Four Corners Flooding
September brought heavy monsoon rains to the region
leaving the ground soaked with much needed water. When the heavy rains hit at
the end of this month, the rain had nowhere to soak and some of the worst
floods in a century hit some areas. Other places that were hit last year
(Pagosa Springs) were hit again. Twelve counties in Colorado alone have been
declared disaster areas by lame duck Emperor Polis. I have relatives and good
friends in the area directly affected.
One small reservoir in the area rose nine feet in just days.
Here is a long and comprehensive YouTube video. The
moderator’s voice is, to me, most irritating. The information is detailed and
accurate.
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Humans are peculiar beasts. There are videos of people
rafting and kayaking in the flooded rivers. Likely the same mindset that would
surf a tsunami.
Getting Old
On most Sundays a local VFW Post will have an “All You
Can Eat” Buffet” breakfast; usually $11 to $15. The offerings are basic, eggs,
hash browns, bacon, sausage, pancakes, French toast, biscuits, hamburger gravy,
orange juice and coffee. Some will offer Green Chile. With the profits staying
in the community, I like to support them.
Far too many of us there are shuffling around; moving
slow. You see lots of canes, walkers,
and the occasional wheelchair. Then you remember this was once us.
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To be clear, while I’m a veteran I never deployed to a
war zone long enough to qualify for a V.F.W. membership. These breakfasts are
open to the public and I will often bring guests.
Civics
One Monday a month local middle school students come to
our building and go door to door offering to take out trash. They travel as a
group of three and are very polite and respectful.
While I certainly can take out my own trash, I make a
point to have something for them if only Amazon boxes.
Car
Story Alternative/Car Dealership Conflicts
“I’d rather have a sister on
the streets than a brother in finance”,
My old boss, Ed Jones would
say. Think of a football team. The sales side is the defense, the finance
office is the offense, and neither side much likes the other.
A question from LL on his blog
VM and my answer prompted more responses. Perhaps this rather long post can
answer more questions, if you have an interest.
The business model of the
sales side of a car dealership usually splits into two sections, sales and
finance. The first step is the sale. Once that is negotiated, the next step is
moving the customer to the “finance” office where “paper work” is done and big
profits for the dealership occur; more to come.
Any car sale involving the
financing of the purchase has two buyers. First is the person(s) driving away
in the shiny new hooptie. The second is the financial institution actually
paying the dealership. Who do you think is more important to the dealership?
The transaction between the
lender and the dealership has two components, recourse and non recourse; more
about that to follow.
Most dealerships use some
version of a 4 square. Most car sales come down to “bore and stroke”, that is
to say, down payment and monthly payment. During the back and forth people
hate, “I need to talk to my manager”, the sales manager in the “tower” is
trying to structure a deal the lender will buy and the customer will accept. Ideally, the manager will get a
“packed payment” as part of the agreement; more on that to follow.
Now you, customer, are off to
meet the finance manager. He/she has earned that position by being the best,
most ruthless, salesperson in the dealership.
Recourse and non recourse. On
the non recourse side, the lender pays the dealer for the vehicle only. After
the customer makes one monthly payment (in most states) the lender owns the
vehicle and cannot charge back the dealer if the customer defaults. The lender
has agreed to a base interest rate (buy rate) and cannot charge back the
dealer.
Within certain parameters, the
lender will include, in the loan, more profit items and pay the dealer under
recourse terms. That is, if the customer defaults on the loan, the lender back
charges the dealer. These agreements are very complex, beyond the purpose here,
but the base concept is valid.
Now to the finance office.
Start with loan interest. Say the buy rate is 6%. The customer doesn’t know
this. The finance manager draw up the contract at 9.2% and the customer agrees.
The difference is dealer gross profit. The finance manager has various
“products” to offer. Extended warranties, roadside assistance, paint sealant,
fabric protection, and on and on. All of these can be financed (under recourse
terms). Now back to the “packed payment”. If all of this adds $200 to the
monthly stroke and if the customer came in after agreeing to a payment with a $150
“pack”, the finance manager’s job is easier.
So how do you, the customer,
protect yourself? Work! Spend several hours, if not days, becoming educated.
YouTube and the internet*** are your friend.
Do not think you will out negotiate the salesperson. My selling days
were before the internet. I bought and consumed every, “How to buy a car” book
I could find. You buy four cars in twenty years. I sell twenty cars a month.
Who will be the better negotiator?
***Many YouTube creators have
something to sell. As ever, buyer beware.
OK, WSF, can you recommend a
plan? Yes, it involves work, it involves planning, and it involves time. First,
arrange your own financing but keep it in your back pocket. Second, spend the
money and discuss your plan with a lawyer as each state is different. How much
will an hour’s consultation cost vs a 72 month purchase contract?
Warning! If you are trading in
a hooptie you owe money on, you will be fucked. Keep driving it until it is
paid off. If it needs expensive repairs, bite the bullet and get it fixed.
You do not want to visit
dealership after dealership to see “what you might like”. Car dealerships are
not Target/WalMart/Nordstrom/Bass Pro Shop and the salespeople have ways to
turn you into a buyer instead of a looker. “We are just looking” will bring out
every technique the dealership knows. Believe this, please. There is a whole
process every salesperson in the dealership is taught to deal with, “just
looking”.
You select the vehicle and do
the regular process. Out comes the four square. Fight hard for the sales price,
trade if involved, and be soft on the payment and down payment. Once in the
finance office say no to the “products” but give them a crumb on something like
mop and glow. The finance manager will be fixated on the interest rate and
wants the deal. Drive away, make one payment, and refinance the vehicle with
your pre-approved lender at a far lower interest rate. At that point cancell any and all the "products".
NOTE: Many dealerships sell the
vehicle just above cost if there is a large profit on the finance side. This is
your hidden leverage.
This is the “plan”. When I
recommend talking to a lawyer first, you want to insure a clear path to
refinancing. Likewise, make sure your pre-approved lender is on board.
Paying cash? I wouldn’t,*** but
if you must, arrive on a Monday morning and preferable the first Monday of the
month. Everyone at the store is starting from zero, the sales manager wants to
“get the store open” and the salesperson, if they are any good, knows the
numbers at the start of the month will determine their month. The end of the
month historically takes care of itself.
***A dealership won't play games with a title when a lender is paying them. They may with a single customer who pays cash.
Personal note. If you can,
find out who is the top salesperson at the dealership. That is who you want to
work with. I considered time to be my
money. The faster I could make a sale, the more time I could spend getting the
next sale. My personal record was eight sales before noon on a Saturday. OK,
they were advertised units and my commission was $50 each. My bonus for thirty
two sales that month was $5,000.
As always, YMMV.