Market Value Adjustment at 18.4% for Maverick

[RonR1959]

Read the article on market adjustment value for the Maverick. It's one of the highest, in demand vehicles, and is at 18.4% above MSRP.

Whether you personally are willing to pay it or not, these trucks are selling like hotcakes!! Some customers who canceled their orders, the dealers are marking them up from $2500 all the way up to $10K above MSRP, and they selling them to buyers who are willing to pay.

Maverick at 18.4% above MSRP

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[atomguy245]

This is all going to end badly once the economy tips into a real recession and people start losing jobs. They will be stuck with sky high payments on depreciated vehicles. There will be a lot of voluntary repossessions, and the banks are going to eat these over MSRP loans they funded. I lived through this selling cars back in 2008. Buyers had a lot of fun flipping from car to car in the early 2000s, rolling over negative equity. Then the recession hit, and they were massively flipped in these auto loans, desperate to have the dealers help them out of their mess.

 

[RonR1959]

This is all going to end badly once the economy tips into a real recession and people start losing jobs. They will be stuck with sky high payments on depreciated vehicles. There will be a lot of voluntary repossessions, and the banks are going to eat these over MSRP loans they funded. I lived through this selling cars back in 2008. Buyers had a lot of fun flipping from car to car in the early 2000s, rolling over negative equity. Then the recession hit, and they were massively flipped in these auto loans, desperate to have the dealers help them out of their mess.

I completely understand. I completely agree that the economy the way it is. Inflation and a recession at the same time is not a good combination. Add the market adjustment value, dealer admin fees, and some that purchase an extended warranty, tax, along with a higher interest, and payments are through the roof!! I'm almost 63, and I don't ever remember a time when things were this bad in the USA!

 

[atomguy245]

I completely understand. I completely agree that the economy the way it is. Inflation and a recession at the same time is not a good combination. Add the market adjustment value, dealer admin fees, and some that purchase an extended warranty, tax, along with a higher interest, and payments are through the roof!! I'm almost 63, and I don't ever remember a time when things were this bad in the USA!

I'm 53, and now old enough to see these economic cycles repeat. I just keep thinking "here we go again" as I see the banks offering mortgages to credit challenged people with no money, and banks funding these crazy auto loans. Definitely nearing a full blown recession.

 

[Maverick2023]

I completely understand. I completely agree that the economy the way it is. Inflation and a recession at the same time is not a good combination. Add the market adjustment value, dealer admin fees, and some that purchase an extended warranty, tax, along with a higher interest, and payments are through the roof!! I'm almost 63, and I don't ever remember a time when things were this bad in the USA!

same to be said about the economy a year or two ago when everything was up in value ranging from housing, cars, stock market etc...Everything must come down eventually.

 

[KFBR392]

We’ll all be kicking ourselves in a few years when very gently used, basically like new Mavericks are plentiful and for sale on dealer lots for well under $15,000.

 

[KFBR392]

I'm 53, and now old enough to see these economic cycles repeat. I just keep thinking "here we go again" as I see the banks offering mortgages to credit challenged people with no money, and banks funding these crazy auto loans. Definitely nearing a full blown recession.

Our economy isn’t nearly as propped up by the car market as it is real estate. The auto loans, as similar as they are to what the banks were doing with mortgages in the 2000s, are not nearly as much of a liability. I will say that the auto industry is indeed propped up by these shitty loans, so we could see some sort of mini-crash that impacts that industry specifically, but Trailer Park Tina in Birmingham, Alabama missing a payment on her salvage title 2011 Nissan Sentra with a 14% interest rate isn’t going to destroy the economy. It’s just gonna fuck up her own life for the most part until the house of cards comes down and the auto industry reaps what it has sown.

 

[LSchicago]

This is all going to end badly once the economy tips into a real recession and people start losing jobs. They will be stuck with sky high payments on depreciated vehicles. There will be a lot of voluntary repossessions, and the banks are going to eat these over MSRP loans they funded. I lived through this selling cars back in 2008. Buyers had a lot of fun flipping from car to car in the early 2000s, rolling over negative equity. Then the recession hit, and they were massively flipped in these auto loans, desperate to have the dealers help them out of their mess.

I don't believe will see a recession in the next few years. It will become a little stagnant from the growth of the last 2 years, but finding help remains a huge problem today. Hot dog stand by me is offering $20 an hour with benefits and can't find more help. Higher interest rates will correct the housing and auto markets. Prices on cars will be back to reality by spring.

 

[atomguy245]

I don't believe will see a recession in the next few years. It will become a little stagnant from the growth of the last 2 years, but finding help remains a huge problem today. Hot dog stand by me is offering $20 an hour with benefits and can't find more help. Higher interest rates will correct the housing and auto markets. Prices on cars will be back to reality by spring.

The Fed is trying to combat the top line inflation numbers by crushing the auto and housing sectors, which will do nothing to fix the worker shortage or supply chain issues. The Fed and other Washington/Wall Street economists have complained that workers have too much money saved and too much labor bargaining power, and these people actually want a recession to wipe out the leverage workers have right now. The real problem is that we have too many working age people sitting on the sidelines not working, but that won't get fixed by a recession.

 

[B2000]

Lenders are not giving home loans to people with poor credit as they did in 2006- you have to be qualified. That said homes are still selling over asking price and "appraising." When prices correct if people have to sell they will eat the difference- not the lender- unless they are willing to ruin their currently good credit rating. At some point lenders will eat a loss when it is less than the cost of litigation.

 

[atomguy245]

Our economy isn’t nearly as propped up by the car market as it is real estate. The auto loans, as similar as they are to what the banks were doing with mortgages in the 2000s, are not nearly as much of a liability. I will say that the auto industry is indeed propped up by these shitty loans, so we could see some sort of mini-crash that impacts that industry specifically, but Trailer Park Tina in Birmingham, Alabama missing a payment on her salvage title 2011 Nissan Sentra with a 14% interest rate isn’t going to destroy the economy. It’s just gonna fuck up her own life for the most part until the house of cards comes down and the auto industry reaps what it has sown.

Yes, the individuals have their credit affected, but the banks auctioning off all the repos at a huge loss can create big problems for them. Unlike housing where the foreclosure process can take a long time, people can just drop their car off at the dealer and walk away, sticking the bank with the vehicle immediately.

 

[atomguy245]

We’ll all be kicking ourselves in a few years when very gently used, basically like new Mavericks are plentiful and for sale on dealer lots for well under $15,000.

Luckily trucks tend to hold their value better than cars

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