Is Demand softening?

[Laredo]

Seems like people are hoarding again

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[Mainerunr]

I am not sure why it matters if the market is slowing down or not. The only question that should concern anyone is

1. do you want one?
2. Can you afford one based on rising interest rates? If paying cash then you just have to worry about number 1.

The difference in payment between 3% and 6% is less than $100 a month. If you're that tight on your payment, you're probably spending more than you should anyway.

 

[Raptor911]

100% ... so many people worry about rates going up and the difference is minimal. If you are stretching yourself this thin to get into a Bronco then you should consider a less expensive vehicle.

The difference in payment between 3% and 6% is less than $100 a month. If you're that tight on your payment, you're probably spending more than you should anyway.

 

[Mainerunr]

What is interesting to me is that Bronco's are sitting on lots much more so than they did 6 months ago. I have been following a few that have been available for almost a month - granted I haven't called the dealer to see what the mark up is. I have no issues waiting until the craziness ends. I refuse to pay over MSRP and fine with waiting a year or 2 if that is what it takes.

It will be interesting to see what the conversion rate of reservations to orders are. The economy is much different than what it was a year ago. I wouldn't be surprised more than a few people decide not to change their 22 orders to 23.

Half the dealers I talked to this summer that were located in MA would not talk to me after they found out I was not from a state that touches MA...was too bad, I found a couple I would have been willing to buy even though they were not quite what I was looking for.

 

[Bremre]

Half the dealers I talked to this summer that were located in MA would not talk to me after they found out I was not from a state that touches MA...was too bad, I found a couple I would have been willing to buy even though they were not quite what I was looking for.

That is interesting. I don't understand why they would care.

Just for reference I did a quick auto trader search for new broncos within 100 miles of Boston and it came up with 110 of them which is quite a bit more than last time I looked.

 

[JBlanco]

It's a shite show in this country!

The fact that we are discussing being angered for waiting to be able to purchase a ~$55K toy shows that we are not the worst when it comes to countries. We will be OK.

My job has taken me to places where families live in a 10X10 corrugated steel box and bathing their kids in a toxic dirty river and puts things in perspective.
I was always happy about returning home from those trips, even when flying first class in a A380 on Qatar Airlines! (one of the best airlines in the world)

 

[Cooldude]

Feel free to show me these broncos that are msrp at this present time. Every time I see one , I click the link or call the dealership it gone or the price jumps.

no demand isn’t slowing and no it’s very rare to order one now or walk off the street and find one at msrp.

feel free to post links to these broncos that are selling for msrp.

Not auto trader search’s or carmax.

 

[Dingbat]

The difference in payment between 3% and 6% is less than $100 a month. If you're that tight on your payment, you're probably spending more than you should anyway.

$75/mo over 60mo is $4,500.
Throw that same money in an IRA and it’s even more... or at least should be.
If it’s just a want it may be worth it at 3% but not 6%. Also, some manufacturers subsidize their loan rates on certain vehicles so it may be possible to find something that fills the same need for less money when rates go up on one vehicle but not the other.
None of the wealthiest people I know would think that is nothing... which is why they are the wealthiest people I know.

 

[EveryDayBronco]

The fact that we are discussing being angered for waiting to be able to purchase a ~$55K toy shows that we are not the worst when it comes to countries. We will be OK.

My job has taken me to places where families live in a 10X10 corrugated steel box and bathing their kids in a toxic dirty river and puts things in perspective.
I was always happy about returning home from those trips, even when flying first class in a A380 on Qatar Airlines! (one of the best airlines in the world)

Mine is a $30k daily driver but I agree this isn't a live or die issue.

I can't afford to pay $55k for one so in my world you guys paying that much and calling it a toy are doing something different! Maybe someday I'll figure out how to have that kind of play money??

 

[Arrowbear Rider]

$75/mo over 60mo is $4,500.

What kind of payment at a 6% rate increase is going up by $75? $75 at 6% equals a $1,250 monthly payment! Maybe you shouldn't be buying a Bronco if your payment is over $1,000 and you can't afford and increase in interest rates. Or you exaggerating the math to force your point!

$500 to $600 payment at 3% equals $15- $18, if less than $20 is going to stop you from being able to buy you may be too "skinny" to be buying in the first place. That was his point, but you take it and double the worst case of 6%?

With great credit, my interest (so far from bank, checked when I did COVP) is aprox 1.5% higher a $7.50 difference per month. People spend that much at Starbucks on one drink.

 

[indio22]

I am planning to order a 23 wildtrak once the order banks open. In the meantime, I have been following the stock of broncos at local dealerships (I live in Massachusetts) and noticed that Bronco's are sitting longer on lots, dealer mark ups are going away and inventory is going up. Are others noticing the same thing? Anybody have any insight into how much of the reservations are actually turning into orders?

It's a numbers game. Bronco is supposed to be a high production vehicle for Ford. It needs to be in order for Ford to max profits. Not a boutique vehicle that can drive prices via unending scarcity.

So at some point Ford will produce enough to burn through 6G forum types, and then it's just a regular vehicle priced accordingly. I don't know when though, because Ford has dragged out the initial burn through due to outside forces and inside missteps.

Can you order that Wildtrack as 4-door with 2.3L and soft top? Maybe you get it sooner at decent price with less drama. Something seems messed up with the 2-doors, not sure what's going in inside Ford regarding those.

 

[Mainerunr]

$75/mo over 60mo is $4,500.
Throw that same money in an IRA and it’s even more... or at least should be.
If it’s just a want it may be worth it at 3% but not 6%. Also, some manufacturers subsidize their loan rates on certain vehicles so it may be possible to find something that fills the same need for less money when rates go up on one vehicle but not the other.
None of the wealthiest people I know would think that is nothing... which is why they are the wealthiest people I know.

While I agree, my comment was based on the fact that the majority of people who are financing something look in terms of what the payment is, not the difference in the total cost. Also, if that $75 a month makes a difference in your day to day living, you're spending more than you should to begin with. None of the wealthier people I know would even blink at $75 a month...and they would all finance it rather than buying it outright because that money should be earning them more elsewhere.

I mean, who knows, maybe rates drop by the time my Bronco comes in (if I can ever order it). I know if rates do not drop, I'll be looking at a whole lot less house than I was 8 months ago (because I can't control the interest rate so I have to make the adjustment where I can...the amount of the loan).

As the the post saying 6% is $1250, I have no idea what that guy is even trying to say. Maybe it's me but I'm pretty sure it's him...

 

[JBlanco]

What kind of payment at a 6% rate increase is going up by $75? $75 at 6% equals a $1,250 monthly payment! Maybe you shouldn't be buying a Bronco if your payment is over $1,000 and you can't afford and increase in interest rates. Or you exaggerating the math to force your point!

$500 to $600 payment at 3% equals $15- $18, if less than $20 is going to stop you from being able to buy you may be too "skinny" to be buying in the first place. That was his point, but you take it and double the worst case of 6%?

With great credit, my interest (so far from bank, checked when I did COVP) is aprox 1.5% higher a $7.50 difference per month. People spend that much at Starbucks on one drink.

Math is not an exact science!

 

[Bremre]

It's a numbers game. Bronco is supposed to be a high production vehicle for Ford. It needs to be in order for Ford to max profits. Not a boutique vehicle that can drive prices via unending scarcity.

So at some point Ford will produce enough to burn through 6G forum types, and then it's just a regular vehicle priced accordingly. I don't know when though, because Ford has dragged out the initial burn through due to outside forces and inside missteps.

Can you order that Wildtrack as 4-door with 2.3L and soft top? Maybe you get it sooner at decent price with less drama. Something seems messed up with the 2-doors, not sure what's going in inside Ford regarding those.

Bingo! Ford has dropped the ball on managing their supply chain. It is part of the reason the stock is down 25% the last month. They admitted they couldn't deliver cars and were going to miss their Q3 numbers. It is also why they shook up their whole leadership team. Ford is in the business of delivering cars and if they don't deliver people get fired. I think they will sort it out over the next 6-12 months. I think what might actually happen is that once the supply side catches up, the demand will be a lot of less and there will be plenty of discounts. At least that is my hope.

 

[Arrowbear Rider]

As the the post saying 6% is $1250, I have no idea what that guy is even trying to say. Maybe it's me but I'm pretty sure it's him...

It's simple math, the post implied that at a higher interest rate of 6% more the monthly payment would be $75 more per month would equal $4,500 over 60 payments. For a 6% higher rate to be be a $75 increase in payment the original monthly payment would have to be $1,250.

NOTE: that example was simple interest, NOT APR, which would make it even less. My simple math is NOT real life because of you don't pay simple interest on a loan. But since he used simple interest $4,500 at $75 for 60 month, I did too. APR and the length of loan make it anything but simple.

My point was he was really exaggerating the cost of a few percentage points (10 times to 20 times and more) to force a point that was wrong.

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