Inflation drive up your costs?

Hamfisted

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Or you got 10% less truck .... missing chips, outdated software, free year of corrosion from sitting in a Michigan rail yard ...






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The Chairman

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If you agree to pay 70K in Nov of '21 yet your truck doesn't arrive till Sept of '22

Didn't you effectively pay a minimum of 10% more???
No, you got it 10% cheaper. Next years dollars are always less valuable.
So if you locked in at last years price and get to pay with this year’s money, that’s a great deal.
 

rd618

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No, you got it 10% cheaper. Next years dollars are always less valuable.
So if you locked in at last years price and get to pay with this year’s money, that’s a great deal.

agreed. Time value of money. 70k last year is worth 77k this year with 10% yoy inflation.
Might not feel it though because your pay check and savings might not have increased 10% YOY but your purchasing power went down by 10% with the same dollars.
 
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