- First Name
- John
- Joined
- Nov 16, 2021
- Threads
- 15
- Messages
- 128
- Reaction score
- 181
- Location
- Nederland, CO
- Vehicle(s)
- 1994 Bronco
- Your Bronco Model
- Badlands
1) How many are buying as daily drivers, and how many as toys? If it's a toy, then they will be stock market investors.only 55-60% of Americans invest in the stock market. I would guesstimate that the majority of people like myself who do invest in the market are long term retirement investors.
Buying/not buying because od market swings are probably not a lot of people. MAYBE interest rates, but even then on a $50k loan, if 3% is OK, 6% shouldn't make too much of a difference.
2) Recessions are not just rising interest rates. They are also rising qualification requirements. The Ford CFO already stated that they are seeing more loan defaults.
3) You underestimate the effect of rising rates from a low level. People are taking out six and seven year loans on cars at 3%. At 6% those go from crazy to absurdly crazy. So, you not only have a higher interest payment, but you have a higher principal payment with a shorter term.
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