Would Paying Weather Tax Prevent This?

 

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.