When you buy a new car, where does your money end up?

[SoCalDem]

Some goes to the dealer, the interest goes to the bank or finance company, some ends up with the person who sold you the car (as commission)..

Each supplier of the components of the vehicle get a cut.. the people who provided the fabric for the seats & headliners..they people who made the battery, the wires, the gas tank..

They all get a chunk of the money, and after all of them and their employees get paid, who gets the rest?

If the company makes money on the deals made for their cars, their stock goes up, and their CEOs get big fat bonuses, and the stockholders get dividends..

Theoretically, as companies DO better, they pass the "extra"" along as pay raises & benefits for their workers, and the eventual "profit" should go back into the company for upgrades and R&D..

All along the "chain", and at every arc in the circle, there are tax obligations by all involved, as well as loopholes.. As long as the circle stays intact, and everyone in the circle gets a share, everything hums along, but when the circle is broken, the whole thing breaks apart.

The end of the line for what's left of the price paid for the car, ends up in a rich man's bank account, whether he's Japanese, Korean, or American, it ends up there.. What he chooses to do with it determines how effective his company will end up, and how well his employees will do.

[Uben]

1. I don't buy new cars, never have

If you look at it as an investment, new cars suck. Would you buy a stock if they guaranteed you it would lose 25% of its value the first year? Well, that's just me. May be why I am financially secure and retired. I buy cars that are a year or two old, low mileage, and thousands of dollars less.

It's not that I have anything against new cars, if people did not buy them, I would not be able to get the deals I do. When all is said and done, I am money ahead, and that is the name of the game, for me.

[SoCalDem]

2. we have only ever bought 2 new ones, ourselves

but tow have used ones for US to buy, someone has to buy them as new :evilgrin:

[spindrifter]

3. According to Debbie Stabenow, only 10%

goes to paying the wages of the men and women who assemble the cars.