Quote:
Originally Posted by TurnerFam
no one pays MSRP... no lender would provide a loan on that - they’re already smart enough to know that a loan is only against the book value, to cover their own collateral risk.
Market fluctuations in value is the only factor that will cause an ‘upside down’ effect - which is the exact definition of Depreciation.
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I think supply & demand dictates how close some are forced to pay toward the MSRP. For example, everyone I know that have been upside in an auto loan was due to paying a higher than normal price that the bank either ignored. I agree that market fluctuation could also effect (like major recall, safety advisory etc that spooks the market). If you look at the new 2019 Lincoln Navigators, they are selling right at MSRP. If you want one bad enough you will pay that, but if you look at the NADA value for the 2018s it is big drop off. NADA when current is reflecting the market conditions. I get what you saying though. I stop doing loans for anything other than a house a long time ago. It is a cycle that if you are ever fortunate to get out of, you actually earn money with your own money to pay cash for autos & big ticket vehicles etc.
In fact, all of the above is why I am
Looking and do NOT own a RV. today. I know what I want, and what I am willing to invest for it. The dealers don't agree with me yet
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