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Reply to "Michigan Central Depot • Update - March 14, 2021"

If the implication is buying this building is why Ford's cars and trucks are so expensive, forget that idea. First of all, when it comes to cars and trucks (especially trucks and SUVs) they are expensive across the board. Secondly, Ford likely is not using cash to buy the building or restore it, they are likely going to use debt financing, potentially doing so using some sort of tax favored bond (municipal, state, some sort of state authority)  which has much lower interest rate on them (and obviously, given Detroit's precarious shape, I doubt they would be Detroit bonds, more than likely state or some sort of regional authority, if at all). When they built new stadiums here in NYC the team owners paid for them, but they were allowed to finance a significant portion using city/state bonding authority, which gave them a much lower rate and also allowed bondholders to get them with tax favored interest , depending on the bond and where the person buying it lives.  So that price tag isn't going to affect the price of a car or truck much, put it this way, whether Ford did this or not, the price would stay right where it is or go up *shrug*. 

 

 

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