Price: $1000 (5-days)
Description: Auto companies make a good amount of money financing their vehicles. There is also some risk when there are economic downturns and loan defaults.
This system will add an additional panel to the banking window starting around the end of WW1. (Administrative skill determines when you unlock the auto loan system, sometime between 1910 to 1935.) The auto financing panel will give players three sliders and a list of marques. The first slider is the median creditworthiness of financing buyers, the second is the median loan interest margin above the global loan rate. And the final one is median term loan length. Each marque has its own financing values.
Internally, the game will bucket sales into three categories. Paid upfront, current financing, and delinquent financing.
Sales that go into the "current financing" bucket will amount to more than the revenues from the sale to account for interest. However, only a fraction of this money will trickle into your accounts over time. Additionally, some of that money will flow into the delinquent bucket. You receive less money from this bucket, as vehicles are repossessed and sold as used, and you lose all debt payments to consumer bankruptcy.
The number of delinquencies is determined by the global and local economic situations and your selection of auto loan sliders.
The game is unlikely to store what vehicles are financed, the current number of vehicles financed, the interest rates, the number of loans, etc. This might be too much data for the game and would slow turn-times significantly. Instead, we will only store the monetary values owed in total. There is a small chance we can store the monetary values owed for each individual model. But keeping track of individual vehicles, the remaining loan term, and how much is owed will not happen.
This system would be an optional game setting.
Requirements: None
Required By: None
Concerns: This system might be overly complex and out of scope. The income buckets might be hard for some users to understand, especially for players who never interacted with auto-loans or have different systems. Because we can't do all the data, it isn't as detailed as the real-life systems. Players might find it too gamey, and it might bring in too many revenues.
The bucket system might not work as well in practice as designed. Turn times might be harmed, and users might become confused about where income is coming from or why they aren't getting revenues from each sale. Some players will demand detailed data for each individual vehicle.
Eric's Opinion: Financing is an important part of the automotive industry and has been around since the start. However, some users might find this too complex, while others will find the system too simple. It opens the door to more revenue streams, while the game probably has too many revenues. This system does provide a possibility of more pain during economic recessions and downturns (a good thing). And it gives the player more options to try to boost sales. Take a risk financing non-worthy buyers to get more sales or be strict on borrowing requirements at the risk of losing sales. Estimated bounty time is higher than expected, as I think the system might not work very well in practice. If this is the case, the system will need refinement or scrapped for alternate bounties.
Links: Contribute!
https://www.nada.org/WorkArea/DownloadAs...1474839119
https://www.encyclopedia.com/finance/enc...s/car-loan
Description: Auto companies make a good amount of money financing their vehicles. There is also some risk when there are economic downturns and loan defaults.
This system will add an additional panel to the banking window starting around the end of WW1. (Administrative skill determines when you unlock the auto loan system, sometime between 1910 to 1935.) The auto financing panel will give players three sliders and a list of marques. The first slider is the median creditworthiness of financing buyers, the second is the median loan interest margin above the global loan rate. And the final one is median term loan length. Each marque has its own financing values.
Internally, the game will bucket sales into three categories. Paid upfront, current financing, and delinquent financing.
Sales that go into the "current financing" bucket will amount to more than the revenues from the sale to account for interest. However, only a fraction of this money will trickle into your accounts over time. Additionally, some of that money will flow into the delinquent bucket. You receive less money from this bucket, as vehicles are repossessed and sold as used, and you lose all debt payments to consumer bankruptcy.
The number of delinquencies is determined by the global and local economic situations and your selection of auto loan sliders.
The game is unlikely to store what vehicles are financed, the current number of vehicles financed, the interest rates, the number of loans, etc. This might be too much data for the game and would slow turn-times significantly. Instead, we will only store the monetary values owed in total. There is a small chance we can store the monetary values owed for each individual model. But keeping track of individual vehicles, the remaining loan term, and how much is owed will not happen.
This system would be an optional game setting.
Requirements: None
Required By: None
Concerns: This system might be overly complex and out of scope. The income buckets might be hard for some users to understand, especially for players who never interacted with auto-loans or have different systems. Because we can't do all the data, it isn't as detailed as the real-life systems. Players might find it too gamey, and it might bring in too many revenues.
The bucket system might not work as well in practice as designed. Turn times might be harmed, and users might become confused about where income is coming from or why they aren't getting revenues from each sale. Some players will demand detailed data for each individual vehicle.
Eric's Opinion: Financing is an important part of the automotive industry and has been around since the start. However, some users might find this too complex, while others will find the system too simple. It opens the door to more revenue streams, while the game probably has too many revenues. This system does provide a possibility of more pain during economic recessions and downturns (a good thing). And it gives the player more options to try to boost sales. Take a risk financing non-worthy buyers to get more sales or be strict on borrowing requirements at the risk of losing sales. Estimated bounty time is higher than expected, as I think the system might not work very well in practice. If this is the case, the system will need refinement or scrapped for alternate bounties.
Links: Contribute!
https://www.nada.org/WorkArea/DownloadAs...1474839119
https://www.encyclopedia.com/finance/enc...s/car-loan
"great writers are indecent people, they live unfairly, saving the best part for paper.
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski