Maverick vs. The Economy [WARNING: NO POLITICS]

[14mustangNJ]

Things are going to be expensive for awhile.

I’d buy it. You have to make peace with yourself that it’s just a truck and if SHTF, you may have to let it go. But you have money today and likely you will have that money tomorrow. So I wouldn’t back out just yet because ordering may be more common, whether we like it or not. And with that, waits for new vehicles may get longer too.

If you are that concerned with a large downpayment then I wouldn’t make a large downpayment. Trucks tend to retain their value and loosing a drastic amount of value the instant you go off the lot seems like it’s becoming a thing of the past these days. So the advantage it seems may be in your favor to hold onto more cash and maybe just cover enough so you don’t have to carry gap insurance for example in my opinion.

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[oljackfrost]

Been thinking about this as well. I think real estate is in the same boat since interest rates are going to rise and that tends to drive both car and house prices down. But when rates initially rise, there's a tendencey for buyers to purchase quicker to get a lower interest rate locked-in.

So my prediction is at least 6 more months of high demand and high prices for both cars and real estate followed by a freefall down in prices and lower sales because high interest rates have priced out too many potential buyers.

This is analogous to water-hammer in pipes -- Close a valve quickly at the end of a long pipe run and the pressure rises as the valve shuts. Rising interest rates are like a valve the Fed is closing...

Funny, I can remember back in the 70s and 80s, 8% was considered a good rate for a home mortgage. We’ve been spoiled for a number of years now.

 

[Davis]

I'm hoping it crashes so hard no one will be buying any cars and I'll swoop in and get a great deal way under MSRP. Oh wait that's what I said about the housing market during COVID, but that didn't work out so well. We'll just have to wait it out and see how things unfold.

 

[Delbert]

I'm glad I am driving a hybrid with gas prices where they are.

 

[Tbolt]

Interesting topic. I think the gap between the have's and have nots is just going to widen. Unfortunately the have nots are likely to face issues with food/transportation/housing at a level that would not have been considered before. So many people live paycheck to paycheck and have no savings. This inflation will only add a critical mass component to that dynamic. However for those that have the flexibility, why wouldn't an entry level priced vehicle not be on their radar? There is a Jeep add we chuckle about every time they show the 90k price tag...It will catch up to more and more folks depending on their situation. Heck my retirement account has lost 2.5% this year, and I expect that to get worse! Feel like i'm just throwing money away contributing to it each check. That has the potential to get me down the road.

 

[dgnx6]

Watching world events these days is kind of like being in a horror movie you didn't buy a ticket for -- and you can't leave the theater! Between tanking markets, wars, inflation, energy crisis, etc., it's all enough to make any family wonder what's next.

So, with that said, I had an interesting question as I thought about still unscheduled Maverick order and the likelihood of being pushed to MY23. If current world and economic events continue on the current trajectory, do you think the Maverick will remain a red hot vehicle that simply can't be found at MSRP? Or, will so many people be struggling that car lot inventories gradually replenish and there are more new vehicles out there than people who can afford to buy them?

I don't claim to know the answer, or be able to predict the future. All I will say is that given current economic uncertainties, it is at least a consideration to hold onto my reserve of cash (large down payment) as a hedge against an emergency rather than using all on a new truck if it's going to take another 6-12 months to arrive. I guess I'll cross that bridge when I come to it, but I can't be the only one who thinks about these sorts of things. Curious as to what everyone thinks...

The answer is pretty simple and who you mark down matters. People act like the answer is impossible. It just means your feelings might get hurt a bit.

 

[JanTheSexyVektan]

This entire thread might age like milk, but I sure hope not. Economies rise and fall but a collapse will make this thread look like rearranging deck chairs on the Titanic.
I will point out that we are at a completely unprecedented point on economic curves we have known so far. It seems bound to plunge. Maverick or skateboard?

 

[Spiffster]

The answer is pretty simple and who you mark down matters. People act like the answer is impossible. It just means your feelings might get hurt a bit.

"who you mark down" is not the be all, end all people like to pretend it is...

Hybrids and EVs will be super hot in the coming years, especially for Ford. Buy if you can. Never been more sure about a large ticket purchase in my life. Still waiting since 10/21

 

[Bob The Builder]

You don't have to take the truck but some of these dealers are asking for $1000 non refundable deposits.

I have already contacted the dealer I plan on buying from and have an appointment the morning of August 15th. The salesperson assured me NO deposit and $500 less than MSRP.

I would never put a $1000 non refundable deposit down on a vehicle that I most likely must wait a year for. A couple of weeks OK, a month, maybe if the mood strikes me., A year? No friggin' way. Too much can happen in life over that period of time, especially at my age. Hell, at my age I don't even buy green bananas!!!

 

[brdl04]

I'm hoping it crashes so hard no one will be buying any cars and I'll swoop in and get a great deal way under MSRP. Oh wait that's what I said about the housing market during COVID, but that didn't work out so well. We'll just have to wait it out and see how things unfold.

Lol, "I'm hoping the economy is so bad everyone is affected, but me."

 

[YOBY]

I have already contacted the dealer I plan on buying from and have an appointment the morning of August 15th. The salesperson assured me NO deposit and $500 less than MSRP.

I would never put a $1000 non refundable deposit down on a vehicle that I most likely must wait a year for. A couple of weeks OK, a month, maybe if the mood strikes me., A year? No friggin' way. Too much can happen in life over that period of time, especially at my age. Hell, at my age I don't even buy green bananas!!!

I know the feeling. My kids are always wondering what I'm spending their inheritance on over the last few years. I told them to make sure they take care of me if their mother goes before me or I'm going to get me a 18 year old girl to do their job and give her a credit card.

 

[Spiffster]

I know the feeling. My kids are always wondering what I'm spending their inheritance on over the last few years. I told them to make sure they take care of me if their mother goes before me or I'm going to get me a 18 year old girl to do their job and give her a credit card.

LOL! I know this was probably a joke but if I ever get the impression that my kids are relying on inheritance in any way Im gonna spend every last penny I have to spite them. Some kids these days would pull the cord the first chance they get.

 

[Davis]

Lol, "I'm hoping the economy is so bad everyone is affected, but me."

You got that right! I hope you don’t think I’m serious

 

[CoryDallas8123]

I’m going to be elated when I finally get my Mav(Build date 8/15) and can still get 0% interest. By then rates may be approaching 7-8%.

 

[jtpc2021]

Watching world events these days is kind of like being in a horror movie you didn't buy a ticket for -- and you can't leave the theater! Between tanking markets, wars, inflation, energy crisis, etc., it's all enough to make any family wonder what's next.

So, with that said, I had an interesting question as I thought about still unscheduled Maverick order and the likelihood of being pushed to MY23. If current world and economic events continue on the current trajectory, do you think the Maverick will remain a red hot vehicle that simply can't be found at MSRP? Or, will so many people be struggling that car lot inventories gradually replenish and there are more new vehicles out there than people who can afford to buy them?

I don't claim to know the answer, or be able to predict the future. All I will say is that given current economic uncertainties, it is at least a consideration to hold onto my reserve of cash (large down payment) as a hedge against an emergency rather than using all on a new truck if it's going to take another 6-12 months to arrive. I guess I'll cross that bridge when I come to it, but I can't be the only one who thinks about these sorts of things. Curious as to what everyone thinks...

Those who are deterred from buying a new car based on the stock market are probably not shopping for a $26,000 maverick.

So yeah, I don’t see entry-level cars (which that is what the Maverick is) having significantly less demand, recession or not.

But yeah, you do you. If you would be draining an emergency fund just for the truck’s downpayment, maybe hold off so that purchasing the truck won’t put your financial security at risk.

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