Quote:
Originally Posted by kpgray
Daughters lease came due and local dealer had two X3's on lot, Zero (0) 3-Series! (Rochester BMW, Michigan). She put a deposit on an "in production" X3, delivery in 4 weeks. Per dealer, the chip shortage has created some "one off" vehicles that are missing power passenger seats (these cars have -$100 or such on window sticker), most 4-series have manual seats, some touchscreens are not in vehicles, etc. Can't negotiate off MSRP yet the dealers are paying for your leases! Just bought Wife a Land Rover, dealer would not come off MSRP, yet they gave us $5,000 for our Jaguar lease return. Figured in 3 years when lease is due, the chip shortage will be better and if prices climb too high, we have a nice buyout of lease. As far as inflation, on Friday the Fed indicated inflation may not be transitionary and the bond tapering would stop sooner than later. This cratered market on a shortened holiday trading. I lived the Carter inflation, it was very painful. Sure, I got 10-15% raises, yet it was always behind the actual inflation. But how does a government reduce the debt, inflate your way out of it! Let's hope they stop this outrageous spending... I was purchasing some items for my BMW Motorcycle, the major supplier , Wunderlich, said prices increasing 10-20% at first of year. We needed new carpet for our home, we were informed company is raising prices 20% effective Jan 1. Co-worker who owns a farm, his feed for animals is up this year over 100% and same for fertilizer and pesticides.
Therefore, I think prices of used cars will equalize to previous levels, however, inflation may keep them up at same "actual" dollar amounts. New vehicles are going to go up significantly, maybe at some time in future, we will be able to negotiate to the "$500 over invoice goal" again but that is at least 12 months out. I have pondered ordering a new vehicle as the Z4 as I can sell my present vehicle for more than I bought it and have something newer before the inflationary pressures skyrocket MSRP values. Based upon past experience, inflation will drive the costs up over next 2-3 years quite a bit. Just as a reference, My father bought a fully loaded 1977 Pontiac Trans-Am (think Smokie and the Bandit) for $5,500. My first new car, a 1985 Trans-Am was just over $11,000. Prices doubled in 8 years. So IMHO, upgrading now is not such a bad idea.
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I was alive during the Cater era and vaguely recollect the bitching my old man did waiting in long fuel lines to pay $0.80/ gallon for gas. Reference being gas was $0.35/ gallon in 73-74 and doubled by 78-79.
Wash, rinse, repeat. What vicious cycle.