Would Changing Economic/Stock Market Conditions Cause You to Pass on an Ordered Car?

[SpeedyATL]

So, a lot can change in 4, 6, 9, 12 months since you ordered your car. If you have a car on order, would the economic climate at the time you are to take delivery impact your decision to close the deal?

For me, my pending car (M440CV) is a luxury that I'm paying close to full price for. (I need a car, but not necessarily a brand new $70k convertible...) And, when an economy slows down, luxuries often go on sale. So I'm on the fence as to what I would do if things slow down while I wait....

I'm just interested to know if this subject has crossed your mind and if so, what are you thinking as you wait for the day your car arrives?

[M3WC]

The scale of future US inflation has not been realized. Plan accordingly.

[Fly320s]

Originally Posted by M3WC

The scale of future US inflation has not been realized. Plan accordingly.

Care to elaborate?

Sounds like you are saying US inflation will be much worse than the current or forecast situation.

[2000cs]

If you’re worried about the stock market, given what’s happened with car prices you might ask the dealer if they’d pay you to let them keep the car so they can sell it (for more, presumably) to someone else.

I agree with M3WC’s comment. Inflation is here for a while, and likely 5+%. The underlying problems of supply constraints and supply chain have not been resolved; inflation is an international issue; and there is continuing desire in the majority party to provide more and more fiscal stimulus. Not sure the FED can stem it, even if they have the will to try, with tight monetary policy. Just my opinion, man.

[Tommy-G]

Being in the car dealership world, this isnt ending this year. If you pass on the car, they will have it sold in a day. I'm serious, salesmen have waiting lists right now for models.

I know nothing about the economy or inflation but the car industry isnt going to recover likely until 2024 sometime

[BRAKE!]

Hey with the Fed set to raise Fed funds rate starting in March this year, wait until then to see what kind of effect it may have.

If the Fed does what it has planned, then we will see interest rate hikes that will eliminate some folks from the list and perhaps you may see decreased demand. I am not sure if the first rate hike will do much however, as there is a lot of demand to kill off for prices to come back down.

At the end of the day, if you have the money for it and you HAVE to HAVE it, then it is what it is - just take delivery. If not then cancel - you’ll not only lose the normal depreciation but also any $ you paid over.

[BMW F22]

I am in the same boat. Not that it would really affect me much but it does make you step back ans ask if one should be buying a $100K+ vehicle during a downturn. Car won’t be here until end of year though.

[wtwo3]

While I'm not ready to order just yet... both of my leases end in October of this year. If they had ended today, I'd likely extend them for several months while I weighed my options and tried to see if there was a market correction to be had.

But I likely wouldn't "pass" on an ordered car altogether. Absolute worst case I would just pay the inflated pricing if the situation didn't improve. I typically set a budget for my cars a bit below what I'd consider my "max budget", just to offer a bit of wiggle room if I truly love something that might be outside budget.... or in this case... during market inflation.

[chassis]

If you need a car, you need a car.

Is your income source solid, or does it fluctuate?

[RickFLM4]

It’s not like the financial crisis of 2008 going on. Unless you lost your job why even think about cancelling?

[3.0L]

I tend to buy more things when my portfolio is up, and less things when it's down.

So yes, the market does influence my buying.

All-in-all, it averages out real nice like.

[Tyga11]

Originally Posted by 3.0L

I tend to buy more things when my portfolio is up, and less things when it's down.

So yes, the market does influence my buying.

All-in-all, it averages out real nice like.

Yeah same. Nothing wrong with treating yourself when you have some nice gains.

[NickyC]