Collateral? As soon as the car (new one, anyway) is drive off the dealer's lot it's in negative equity.
25% maximum loss on cars if you drive it off the lot. car's are useful people need cars to get to work.
I will only lease if the money factor is exceptionally low AND I can get sales tax credits (something the dealers do here in TX).....it is like getting the car with no sales tax paid. Otherwise, I pay cash and ONLY buy something that is a very very good deal.....like when AUDI was giving away 4.2L A6 "S-LIne" Quattro's this summer here in Austin with the high fuel prices.
A year from now, the deals should be even better. I remember 1982... Audi dealer almost BEGGED me to take something off of his lot... several dealers here went BK then... same again, likely.
All the government is doing is guranteeing even more inventory that will sit around and rot. The car market will probably going into free fall just like the housing market
AUDI here in Austin has had an increase in sales since July....gas price drop mixed with high demand for the A5's and new A4's. Plus they have been taking market share in town away from Lexus, BMW, and MB which has helped them out......deals are not as good now as in July. As the economy gets worse in 2009, I am sure the super great deals will be back but I needed to add a 4 door car this summer so I took advantage of a great below invoice deal.
Please explain. Does this also apply to other depreciating assets like TV/stereos, furniture, appliances etc?