New news from the Fed:

If you're looking for a way to "Man-Math" your way into a new truck with your significant other, let them know the sooner you buy a new truck the more you're likely to save on an interest rate.

I see a lot of guys warning people not to make large purchases in the near future, but it looks like we're gonna get crushed more and more for the next couple of years.

 

Auto lending is a bit different than traditional lending because the auto makers will offer competitive below market finance rates if they are having trouble moving inventory. Ford, Mazda and Honda are already offering 0-2.9% rates on some models.

But generally agree, financing a car now with no incentives and a high rate is a bad idea unless you need the vehicle today. Especially if you have to pay a markup.

 

Or… save your money, wait for the recession and subsequent repos to kick in, and pay cash.

 

If you cant pay for the vehicle cash these days dont buy a car! Simple. Interest rates just way to high.

But this is America where people love debt and live beyond their means!

 

I never understood raising interest rates. Sure it stops people from spending money and slows down inflation but it only helps the rich. If you can pay cash for things, you score. If you can't, like most of us, you get screwed.

Housing market in Hawaii right now, totally favors the rich and wealthy. No one can pay 1 million cash except rich people.

 

That isn’t new. It’s always been that way there.

 

But at least with low interest rates, middle class have a slight chance.

 

The fed doesn’t work for the average person

 

Interest rates increasing doesn't help the rich, they're just unaffected (less effected when considering the entire economy). Not quite the same thing.

 

We’re going to fix the economy by raising interest rates, making everything more expensive, printing more money, and wrecking your retirement portfolio!

 

Maybe. I'd say there's a chance rising interest rates causes costs to go down. Think, houses. Pricing comes down enough for the elites to pay cash on a (now) undervalued house and they can flip it once rates drop again. Doesn't cost them anything since they pay cash.
It helps them, just not in the short term. It helps their wealth in the long term.

 

I drove a corolla into the ground for 14 years, bought half the house I could afford, shop at Aldi, mow my own lawn, and fix most things that break myself. I lived on rice and beans to pay off my wife’s student loan. Paid off my mortgage. I rarely eat out. I keep loaf of bread and peanut butter in the truck. In the process, I save cash and invest. By my mid 30’s I was debt free. I have also funded my kids’ college. I am now in my 40’s and really do not have any financial stress. I still live prudently but also enjoy traveling, fly fishing, and enjoy my life. My wife and I both teach, so we are middle class. I do not say this to brag but to illustrate a point. Most do not have to accept the status quo and become enslaved by debt. Most have made the decision to do so by making immature and impulsive financial decisions.

The rich will always have an advantage, they’re rich. However, many middle class people are stupid financially and will finance beyond their means which allows prices to keep creeping higher. We have also become a very entitled culture. Look at house sizes in the 1950s versus now or how often the average person eats out or how much crap kids get or how many lawn services are in the neighborhood. Not to mention idiotic borrowing for college. With this behavior, many are choosing to become destitute. To each their own, but each must live with the decisions made. If we want cheaper trucks, stop buying expensive ones and the market will adjust. If I have offended anyone, I apologize as this is not my intent. I have made mistakes in life, but, fortunately, not financially. Live simply and reject the norm.

 

Awesome. Congratulations. Facts don't care about feelings. 100%. The market will adjust when/if consumers stop spending.

 

The market RELIES on consumer spending.

 

You should be able to beat most auto lending rates with a little bit of financial education and effort, and significantly beat them if you're into real estate. I'd rather put $50k into a growing asset than a depreciating one.

 

Yeah! Uh, if it’s that x-y-axis simple…

…and not complicated by supply chains, global capital, trade agreements, VAT, lots of financial instruments with funky names, and a lot of other stuff…

but yeah!

 

But you bought a 3rd gen instead of not spending…

 

I'm familiar with how economics work. With the obvious stated, vendors will not adjust their position until the consumer responds. Moreover, vendors are wise enough to perform market research. Thus, three vendors will ask from the consumer the same amount while performing three different levels of services, e.g., poor, acceptable, phenomenal service.

 

I hear you, but the credibility of "supply chains" & other funky names is non-existent. I understand the process isn't "simple" but have you ever wondered why it got overtly complex? Again, I hear you; but controlling market prices is fairly direct--not X-Y-axis simple as you stated--but fairly direct.

With that said, I feel your response is hyperbolic. I can pull up 10K forms that contradict those funky name excuses.