LX600 - Inflation over night

[75Denver]

Here we go....I've been watching all the so-called "rare" models (eg. Ford Broncos) instantly being flipped by new owners and even by the dealerships for a quick buck. But crap like this is just becoming extremely annoying (window sticker $107,810.00).

 

[TLar25]

stopped at a Ford dealer to look at a 2 door Bronco they had out front and had to laugh at this. Not nearly as ridiculous as that LX though

 

[manofthewoods]

View attachment 2937974stopped at a Ford dealer to look at a 2 door Bronco they had out front and had to laugh at this. Not nearly as ridiculous as that LX though

Gotta give 'em credit (a little) for a creative way to say "we got you by the..."

Reminds me of a million years ago when my "colleagues" and I came up with our job title, "retail petroleum distribution engineer"

 

[taccruiser97]

The dealer can “Market Adjust” all they want. As a consumer, vehicle purchases are largely optional and Market Adjustment can be eliminated by deciding not to buy.

 

[75Denver]

That $20k Market Adjustment is the minimum, my brother saw a First Edition adjusted $60k ($118k) in Vegas. Consumer spending is ultimately what decides, but when the top executives call out BS on the dealers for that sort of adjustments, you begin to see where greed supersedes sanity.

 

[OSS]

Capitalism at its finest

 

[Noah Miller]

Just another 20K in depreciations tax deductible for company cars.

 

[Patassa]

The dealer can “Market Adjust” all they want. As a consumer, vehicle purchases are largely optional and Market Adjustment can be eliminated by deciding not to buy.

Amazing how this seems to be lost on most people.

 

[studawg]

Here we go....I've been watching all the so-called "rare" models (eg. Ford Broncos) instantly being flipped by new owners and even by the dealerships for a quick buck. But crap like this is just becoming extremely annoying (window sticker $107,810.00).

Im curious, why is this annoying to you?

 

[Knowbuddy]

Im curious, why is this annoying to you?

I will be flipping a bronco to fuel my land cruiser addiction.

 

[eatSleepWoof]

This isn't "inflation," this is useless parasites showing their true colours. The same people that were buying and "flipping" Lysol disinfectants and masks at the start of the pandemic. The same people that gobble up free, city-distributed sand during snowstorms and then try to sell it on Craigslist.

 

[Surf123]

Just another 20K in depreciations tax deductible for company cars.

Overspending by $20K for something for a business and thinking writing it off is an advantage is far from that. No business owner would overspend on something with idea that overpaying means a larger write it off. Sure you can write-off just about all expenses, but minimizing expenses maximizes the amount of money you have for yourself. One exception to this, albeit illegal, would be to lie and inflate the actual cost of an expense or just plain make up expenses and deduct.

The advantage of SUV's or trucks with a gross vehicle weight rating 6000 lbs or higher is a tax code anomaly that was never intended for personal vehicles. The aim was for businesses to be able write off the entire cost of true work vehicles such as passenger vans, work vans, dump trucks, etc during the year purchased. When written, Congress never considered that a passenger car, truck or SUV would ever have a gross vehicle weight rating of that much. Obviously people capitalized on it as did I multiple times, however the rules have changed. Effective for 2021 the depreciation for SUV's meeting the gross vehicle weight rating is limited to $26,200 all but eliminating any tax advantage. The SUV limit is about $8,000 more than a vehicle weighing less is so that counts for something. I expect sales of these heavy vehicles to slow down as there is no real advantage anymore, but when you wanted a Land Cruiser and were going to buy one no matter the tax advantage you'd really like writing off the entire cost versus being limited to $18K or so.

Consider this example that applied prior to 2021: $120K to spend on a vehicle and you purchase a $100K vehicle with a $20K markup. You can write off the full amount of $100K assuming 100% business use. Had you paid $100K you would have the $20K (less taxes) as additional income you could spend on something else or just plain blow, which is a far better deal. Desirable vehicles are different as they have a desirable use outside of work much like a computer, mobile phone or printer does, but they do not warrant paying any dealer markup.

 

[Zill]

The $26,200 cap is if you’re taking section 179 on the deduction. Bonus depreciation for business use vehicles still allows for a 100% bonus depreciation in the year the vehicle was placed in service for vehicles above 6,000 GVWR through the end of 2022 (fellow CPA here). 2023 is 80% and 2024 is 60%, etc. I do agree that generally chasing a tax deduction that relates to a bad investment (paying a dealer markup) is a fools move though. With the pending economic outlook (gas prices dealing havoc for the average consumer) in mind, Congress may be incentivized to extend the 100% bonus regs to spur the economy. We will see.

 

[Joe T]

The $26,200 cap is if you’re taking section 179 on the deduction. Bonus depreciation for business use vehicles still allows for a 100% bonus depreciation in the year the vehicle was placed in service for vehicles above 6,000 GVWR through the end of 2022 (fellow CPA here). 2023 is 80% and 2024 is 60%, etc. I do agree that generally chasing a tax deduction that relates to a bad investment (paying a dealer markup) is a fools move though. With the pending economic outlook (gas prices dealing havoc for the average consumer) in mind, Congress may be incentivized to extend the 100% bonus regs to spur the economy. We will see.

The more they spur the worse the landing.