SndsoftheSbrbs

No stimulus check. I got PPP, but the two employees (60+ married women) didn't want to come back to the health care setting.

MBNUT1

I am surprised that investing in the market was an eligible option for use of PPP. Very poor management of the funds on the govt's part. I am assuming that loan would not be eligible for forgiveness.

Streamliner

I would bet that 99.9% of all the PPP loans will be forgiven, no matter what.

MBNUT1

Not arguing, but what makes you say that?

From PPP site:

HOW MUCH will be forgiven?

The process to calculate the amount of loan forgiveness requires three steps:

1. Determine the maximum amount of possible loan forgiveness based on the borrower’s expenditures during the 8 weeks after the loan is made;
   
2. Determine the amount, if any, by which the maximum loan forgiveness will be reduced because of reduced employment or reduced salaries and wages; and
   
3. Apply the 75% rule that requires that at least 75% of eligible loan forgiveness expenses go towards payroll costs.
   

mikey94025

I don't understand your point. Actually, leasing is very good for this individual because they are not locked into buying the vehicle at the residual price and can walk away. So when circumstances like this occur, where the market values drop in an unanticipated manner, then leasing offers extra advantages to the lessee. This happened many years ago as well when SUVs dropped in favor so residual prices were much higher than market values.

I also think your statement about not being able to negotiate is not true. I have a local friend who leased an electric B from MB and negotiated a lower purchase price at the end of the lease. I don't know why he wanted this old electric, but he did. I don't know the details myself and you can argue about how this occurred, whether the dealership vs. the finance company negotiated the lease or whatever, but in the end the only thing that mattered is my friend payed less than what his lease contracted residual to own his leased vehicle. He threatened to walk away and whoever decided it was better to take less than the residual now vs. leave the car for auction.

zpcsc

I'm sorry, but what do you mean by tge? Thank you.

Wolfman

So you are officially stating a illegal misuse of the funds... they just threw a guy in jail for buying himself a new RR and jewelry

SndsoftheSbrbs

It was to retain two employees, but the employees declined to have their jobs back. I wasn't going to return the money!

MBNUT1

Since 75% of it didn't go for payroll, and the remaining for legitimate business expenses, I think that you will have to pay the money back, admittedly at a very low interest rate (1%) over the next two years, Not an accountant but that is my read of the of the PPP requirements.

It's BS that the govt would give you a loan intended to help people stay employed for that to be allowed to be put in the stock market and should be highlighted in the press.

Of course if anybody believed that Amos Moses was going to drain the swamp......

Nice Ride

If the money " is not " used upon receiving the funds immediately for Payroll, it is considered a loan. Loan % / Terms are determined by the bank that issued you the check. So, keep the loan at the % rate you will have to pay or return the money. Those are your only legal options.

DONT ASSUME THE RATE WILL BE 1%..... IT MAY BE 3.X or Higher. You will need to call the bank that issued the loan. Good Luck, they don't even know what rate they are going to charge you yet.....

MBNUT1

Thank you for correcting my post.

teksurv

I realize this thread has skewed all over the place. To the prior point, if you want to buy your leased car, your dealer will assist. You are buying a used car, negotiate accordingly. Residuals on leases from MB and BMW are inflated to ensure movement of cars.

PPP loans meant to help employees, not used for that purpose.... I'll leave it at that.

ChuckinTucson

Another reason the used car market is going to tank is rental cars. With the travel industry in general not expected to recover for some time, there are thousands of rental cars sitting idle that will need to be sold at auctions. I live near Phoenix and there is a spot near one of the Indian casinos where there are hundreds and hundreds of cars parked bumper to bumper just sitting there.

chassis

I’m not seeing any tanking in the used car target searches I monitor for high horsepower German four doors.

zpcsc

Hello, to follow up. We went to another Mercedes dealership a little further north. The salesman that showed us the used cars explained that they'll be able to negotiate our residual value and bring the price down. He says that during these times they are working with customers. He also said that if I got a better rate through my credit union I could use them. I have already spoken to our Credit Union.
We checked on any similar to ours a c-300 with a sport package and there aren't many available.

RJC

Some thoughts. Most rental car fleets don't have HP flagship German cars. Outside of rental fleets being sold off, it will take some time for all that's occurred recently to filter out be and taken seriously, as Wall Street is so overly optimistic these days they're willing to overlook anything so long as the fed keeps pumping in trillions and are scared to bet against it (and wisely so). But many know late summer/early fall may reveal some things that cant be so easily ignored...

chassis

I agree that we have yet to see the full path the economy will take. I am a fan of the Federal Reserve's data releases (FRED site). The stock market has been driven by technology, medical/health and consumer low-ticket items. These will soldier on even in a sustained slowdown. Homebuilding and new car sales will decline. Hospitality and travel will make a gradual comeback, at least domestically in the US.

SndsoftheSbrbs