Why the Mach1 is a rip off

[dethmaShine]

with all due respect i've never heard that argument made by anyone that i would trust for financial advice. in an era of double digit inflation, borrowing money at historic lows and fixed rates is a no brainer. otherwise you are essentially giving your money to the bank to profit off of it. over 30 years you can do much better holding that money and investing it. congrats to your daughter for working hard and saving though. thats a great accomplishment at a young age.

100% agreed except for "double digit inflation". That's patently not correct and it doesn't go across all items. Only specific part of supply chains or monopolized chains.

That said, if you are not borrowing money now and growing it in value, you are technically losing a huge opportunity cost. For folks that have a good stream of stocks, highly recommend margins that even go on SnP because you will very likely be > break even.

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[Kermut]

Just noticed your avatar pic update!

Hah thanks, just got home, when I have time I'll post a story and initial impressions.

 

[shogun32]

100% agreed except for "double digit inflation". That's patently not correct and it doesn't go across all items. Only specific part of supply chains or monopolized chains.

we have solid double-digit inflation actually. The official gov't stats are lying thru their teeth and have been for 30 years. There are several alternate means of evaluating inflation and they are downright ugly.

 

[traxiii]

we have solid double-digit inflation actually. The official gov't stats are lying thru their teeth and have been for 30 years. There are several alternate means of evaluating inflation and they are downright ugly.

Don't start elaborating on the subject or you'll be subject to a strike and be put on "double secret probation". Politics is a strictly forbidden subject here.

 

[Atlas1]

The wrong politics is a strictly forbidden subject here.

Fixed it for you

 

[dethmaShine]

we have solid double-digit inflation actually. The official gov't stats are lying thru their teeth and have been for 30 years. There are several alternate means of evaluating inflation and they are downright ugly.

Our government's been shit for more than 30 years hehe. But there is no conspiracy here. There are however very measured ways of calculating inflation. It's not something that is hidden or can be hidden.

You can basically calculate inflation yourself for pure commodity items based on your expenses. You can then go further and plot commodities in a graph based on similarity heuristics and traverse the graph and extrapolate quite accurate values for inflation on commodities you do not deal with.

You can then extend your graph dynamics and have purely predictable models and predict a certain level of inflation on certain set of commodities as long as you have data.

 

[shogun32]

You can then extend your graph dynamics and have purely predictable models and predict a certain level of inflation on certain set of commodities as long as you have data.

http://www.shadowstats.com/alternate_data/inflation-charts
http://www.shadowstats.com/imgs/sgs-cpi.gif?hl=ad&t=1639148247

Univ of I think Michigan has their own. There's the Big Mac index and a few more.

 

[Kermut]

Fixed it for you

Ah yes the mustang6g forum, the bastion of liberalism.....

I've always felt the forum has skewed hard to the right, but that's to be expected with the demographics of the Mustang community. I'm a registered independent and consider myself very centrist for what it's worth.

 

[br_an]

Plus there's no mall, or burger and malt joint to hang with the greasers.

Gotta go to Arnold's for that

 

[shogun32]

and consider myself very centrist for what it's worth.

at least your choice of yellow is commendable and demonstrate a 'centrist' ethos.

 

[ICU812]

This BS about kids buying new Mustangs while in high school or right out of college. It would have only happened for rich kids when I was that age. The rich kids were getting BMW 320i's that their daddy's bought them. The girls got 320i or VW Rabbit Vert.s

I didn't buy my first "NEW" Mustang until I was in my 30's. I bought my first Mustang, a 1967 Fastback in 1978 for $1450. It had 137K miles on it and it needed some work. Ended up rebuilding and upgrading the 390ci. engine with my dad's help.

Hardly anyone in my class had a new car, and all us "car" guys had mostly mid to late 60's muscle or pony cars. They were cheap then as the gas crisis had and was happening. Gas went from 29.9 cents to 50+ cents a gallon.

Well, I bought a new t/a at 18, after saving since I was 14.
And Many of my friends had new cars, because we busted our asses and WANTED IT.
But that said, YMMV

 

[ICU812]

with all due respect i've never heard that argument made by anyone that i would trust for financial advice. in an era of double digit inflation, borrowing money at historic lows and fixed rates is a no brainer. otherwise you are essentially giving your money to the bank to profit off of it. over 30 years you can do much better holding that money and investing it. congrats to your daughter for working hard and saving though. thats a great accomplishment at a young age.

Again, If the mortgage rate is say 2.9%, on 300k .
You'd pay 4733.00 a year in interest IF home loans were not front loaded with first few years you paying more of the interest balance, than the principal. So lets say 7k a year in interest.
After deduction(taxes) it might be a net 5200.00 a year cost.
Buying cash, You don't have this cost, and that 7k can go into investments, over and above what you would be putting into your retirement ,etc anyways.
The home market is a bubble that will pop just like 2007-9.
Prices went back up way to fast. The stock market is also over valued, and risky ATM.
So even though you could take a loan for the home, and bet against the house (stock market) and risk it. That is not a wise move. 14 years ago, sure, after the crash, but not NOW, as it is over valued, and Crap is about to get really real soon.
When the home is paid for, no one can come and force you out of it, because you hit hard times and could not make the payments.
You buy low, sell high, in the market, and it is all way to high. you don't buy now. not investments ,nor a home.

 

[Atlas1]

Again, If the mortgage rate is say 2.9%, on 300k .
You'd pay 4733.00 a year in interest IF home loans were not front loaded with first few years you paying more of the interest balance, than the principal. So lets say 7k a year in interest.
After deduction(taxes) it might be a net 5200.00 a year cost.
Buying cash, You don't have this cost, and that 7k can go into investments, over and above what you would be putting into your retirement ,etc anyways.
The home market is a bubble that will pop just like 2007-9.
Prices went back up way to fast. The stock market is also over valued, and risky ATM.
So even though you could take a loan for the home, and bet against the house (stock market) and risk it. That is not a wise move. 14 years ago, sure, after the crash, but not NOW, as it is over valued, and Crap is about to get really real soon.
When the home is paid for, no one can come and force you out of it, because you hit hard times and could not make the payments.
You buy low, sell high, in the market, and it is all way to high. you don't buy now. not investments ,nor a home.

Do people that generate wealth, I mean significant wealth, buy real estate that way? Your math also doesn’t take into account what holding that extra cash and investing it over 30 years would return. You should redo the calculations based on investing that upfront in the market 30 years ago and see what it would be worth today. Subtract the interest total from that number. Is it a net positive or negative?

 

[Lilmags500]

I originally wanted to upgrade from my 2018 A10 GT Premium (with PP1, MagneRide, Safe and smart) to a 2019 Corvette Z06, but I wanted back seats for my kids. I test drove a ZL1 and the rest is history: custom ordered...built...and as of Tuesday this week, loaded onto a train for transport. Contrary to most people's belief, the ZL1 has a comfortable ride due to the magnetic dampers (The ZLE is a stiffer ride). The ZL1's visibility isn't bad with properly adjusted mirrors. And the difference in cost ($3k) includes gas guzzler. If you drove a ZL1 you probably wouldn't care about the smaller trunk. I'm not sure how the Mach 1 is any more usable in the winter than the ZL1, either.

I used to say the same things: "visibility is bad, trunk is small, etc., etc.". Then I drove one and you realize that stuff is overblown and the ZL1 is just a monster (a comfortable one, at that).

I get personal choices, to each their own. But, only $3k more for a much better performance car (comparably equipped) means the Mach 1 needs to have other attributes to bring value - for some, the name and larger trunk (yippee!) are enough. But, most likely, those people haven't driven a ZL1!

Looks are subjective and I think the ZL1 looks awesome. This is hardly an "ugly" car by most common definitions:

GM goes bankrupt due to shitty products and extremely poor money management ... (To me this ended the who's better Ford or Chevy debate) With this said , we the taxpayers bailed them out with billions of our money . To thank us , they built 3 GM plants in China and have thus far failed to pay back their debt to the American people . Fuck GM . I would drive a fiesta before I spent a nickel on a Chevrolet / GM product ..... Suit yourself though .

 

[shogun32]

Do people that generate wealth, I mean significant wealth, buy real estate that way?

no. they see what income the property will throw off and buy at "any" price if the income and expected appreciation is good enough.

If they guess wrong, they take a business loss and write it off and get multi-year credits on future income.

See BlackRock.

Housing is mind-bogglingly distorted. It's not supposed to be an investment, it's supposed to be a place with 4 walls and a decent roof in which to shelter from the weather. Even if you pay off the house up front or over 30 years it doesn't matter if you can't make the local tax payments. I haven't looked at which States have a homestead exclusion where tax is never owed on the primary residence, or where tax default can never be used to seize the property. I think some of the Western States have such provisions. But in the rest you are only 'renting' the property from the local municipality exactly no different than the Chinese Communists who let you 'buy' a 100yr lease on a piece of land and it then reverts to the gov't and you have no such thing as 'title' or 'ownership'.

Isn't there a M6G investment thread we could move this over to?

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