Am I crazy or is this the worst time ever to buy a vehicle?

[Buster]

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Went window shopping to check out a Bronco Ford in Strathmore had. Was chatting with the sales guy... Best rates they got is 5.49 for new, and he says anywhere from 7 percent to 9 percent for used vehicles. Pretty insane anybody would pay that.

Pretty insane people were buying bonds that had a ytm of 0%.

There's another side to every equation.

[andyg16]

What do you guys think will happen with auto finance rates if things do end up slowing down? Up until now I remember there were always great rates to be had regardless of what BoC was doing. I'm leaning towards an MDX for my wife, their rates are shit though.

[heavyD]

I remember back in the day financing my Civic at over 6%. We have been kind of spoiled the last decade when it comes to low interest rates.

[Xtrema]

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I think it’s a bit of a stretch now but a few exchanged hands at those levels. It is the last NA V12 Lamborghini produced, so there is a bit of collector value factor involved.

Anyways, I think the big hits will/have started in the higher end car market and will slowly trickle down into the rest of the market. Just think it’s a good sign of things beginning to slow down.

The Japanese may keep this up for awhile yet.

https://jalopnik.com/the-ev-transiti...tha-1849758647

After more than two years of Covid-related restrictions, drivers are spending money on new cars, while the global shift toward electric vehicles is sparking interest in supercars and the growl of their engines, according to Yasuhiro Suyama, president of the Japan Supercar Association.

“If you don’t drive them now, then when?” Suyama said.

[killramos]

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What do you guys think will happen with auto finance rates if things do end up slowing down? Up until now I remember there were always great rates to be had regardless of what BoC was doing. I'm leaning towards an MDX for my wife, their rates are shit though.

Rates are dictated by powers much bigger than the auto industry.

Sure there will be some rates with below market sticker values, offset by paying more for the vehicle.

During the years of 0% financing it was very often a choice of x% off the car or 0% financing. The effective loan rate works out to market rates once the numbers of deconvolved.

The piper always gets paid.

[Buster]

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I remember back in the day financing my Civic at over 6%. We have been kind of spoiled the last decade when it comes to low interest rates.

We have?

Loose monetary and fiscal policy has created the very inflation that everyone is complaining about in this forum and on every street corner. Spoiled by bad policy? I think not.

[Xtrema]

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What do you guys think will happen with auto finance rates if things do end up slowing down? Up until now I remember there were always great rates to be had regardless of what BoC was doing. I'm leaning towards an MDX for my wife, their rates are shit though.

You need people to be out of work and stop spending 1st and that ain't happening, at least not yet.

And if you look at historical norms, the decade after 2009 is not the norm compared to the years before it. Current high rate is actually normal if not a bit low still.

Wait til BoC is forced to raise to 6% next year from current 3.75%.

[max_boost]

It was fun while it lasted

While Bavarianbeast and boom shakalaka use lambos as gauges

I see 911 prices still high, Nsx prices have dropped tho lol

[90_Shelby]

It wasn’t too long ago that you’d be criticized for not carrying any debt, since you could make more with your investments then what your interest payments cost. How well has that worked out, since the market has crashed and interest rates continue to climb? Did everybody manage to cash out before the crash and pay off their debt?

[max_boost]

Not me haha but what else is new lol

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This recession hitting me so hard I started dating women who make their own money lol

[Buster]

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It wasn’t too long ago that you’d be criticized for not carrying any debt, since you could make more with your investments then what your interest payments cost. How well has that worked out, since the market has crashed and interest rates continue to climb? Did everybody manage to cash out before the crash and pay off their debt?

Timing the market is an excellent investment strategy.

[ExtraSlow]

You guys finance?

[90_Shelby]

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Timing the market is an excellent investment strategy.

For clarity, I went the alternate route by carrying no debt, while letting my investments ride.

[max_boost]

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You guys finance?

You don’t?

- - - Updated - - -

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For clarity, I went the alternate route by carrying no debt, while letting my investments ride.

No debt life is a chill life

[Buster]

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For clarity, I went the alternate route by carrying no debt, while letting my investments ride.

de-leveraging isn't always an optimal decision, but it's rarely a bad decision.

[heavyD]

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You guys finance?

At 0% or low interest rates it's a no brainer unless you are filthy rich where you don't need to worry about investments. If you are simply well off or moderately wealthy it would be foolish to tie up $50k+ cash into a depreciating asset like a car if you could pay for it in payments interest free.

[bjstare]

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At 0% or low interest rates it's a no brainer unless you are filthy rich where you don't need to worry about investments. If you are simply well off or moderately wealthy it would be foolish to tie up $50k+ cash into a depreciating asset like a car if you could pay for it in payments interest free.

Assuming the purchase price isn't inflated to make up for the lost financing revenue (as mentioned above).

[ExtraSlow]

Did I need to use eye rolling emoji next time?

[killramos]

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Assuming the purchase price isn't inflated to make up for the lost financing revenue (as mentioned above).

This was a practice that was so prolific a lot of jurisdictions put in rules dictating that the “effective” financing rate had to be disclosed.

[you&me]

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This was a practice that was so prolific a lot of jurisdictions put in rules dictating that the “effective” financing rate had to be disclosed.

Without caring enough to check... But not AMVIC, right?