Frame replacement worries

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Aug 8, 2005 | 12:44 PM

#16

bcjim

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Joined: Apr 2003

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Quote:

Originally Posted by osbornk

The market determines what something is worth (per Econ. 101). People are "upside down" in their vehicles because they didn't bring enough money up front. If you're going to be "upside down", you probably shouldn't buy that vehicle until you can really afford it. If you do, you need to be sure and buy gap insurance that will pay the difference between what you owe and what the vehicle is worth in case it is totaled or stolen. This is especially true in leases because you are always "upside down" in the early part of a lease.

You are right of course, nobody should buy anything they cannot reasonably afford. However, it seems like for Ford to thrive as a company they need us to buy cars frequently as evidenced by the crazy promotions they trot out when sales are off a bit. They make it tough to do this however by putting ridiculous MSRPs on cars.
Example my 03 Ex MSRP about 31K, paid 25.5K, current trade in value? probably less than half what I paid. That is obscene.

Maybe upside down is the wrong context here, reasonable depreciation vs actual depreciation is what I am getting at is something that is causing people to be gunshy about pulling the trigger again.