Feds to up Interest Rates

[Area51BS]

Dealer finance guy just tried to hit me with 84/m don’t recall rate and payment, but ball park 9% and 800/m for a VW Taos. I said where the hell did you come up with that. I told the sales guy manufacturer offered 4.49/60m so that’s what I want when I get to finance office. Guess if I said yes they hit a home run. Do your home work. They are sleazy.

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[Andy6GRealG]

At least we don’t live in the 80’s, where rates were in the double digits. A car loan or mortgage was running 14% at its best and 24% interest at its worst. I’m used to my 2% interest but even 6% isn’t bad when you compare it to other times. Perspective will make it a little easier I guess.

 

[MnLakeBum]

Interest rates for car loans and mortgages are not high when looking at the averages for the past 50 years. The real pain will be if the high inflation continues to stay far above historical averages. Recent inflation is like a tax on everything you buy but it obviously hits the middle and lower income classes much worse. With all the government (over)spending, there’s a chance that high inflation could stay with us for many years to come. If you got a typical 3.5% pay raise last year, your income really went down about 5%.

 

[vrtical]

Dealer locked me in at 7.5% a month ago on open market with 800+ scores, new car buyers are going to be in for a shock. I ended up at 3.89 doing my own.

 

[Techun]

I work in automotive. We get notices through our lending when customers file for bankruptcy. We don't see these too often. That said, we received 14 last month.

I am going to pass on my bronco that is in production now. I could pay cash if I wanted. But, there is something unfolding in the economy right now. Not sure how crazy it will be, but I want to be prepared.

Cash is king.

Costco offers a really nice double pack of heavy duty tin foil.

 

[f1loco]

Dealer locked me in at 7.5% a month ago on open market with 800+ scores, new car buyers are going to be in for a shock. I ended up at 3.89 doing my own.

What bank at 3.89? How many months?

 

[Strykerwsu]

I wish my pay went up as easily as they raise rates!

I mostly agree with you, but thank God mine has increased well above interest rate changes over the last 10 years lol

 

[BroncoA512021]

So how many will not purchase a truck now?

If you look at historical date, interest rates are still "low". Purchase what you can afford and not what you want. Buy an appreciating asset like real estate.... And NEVER EVER take and auto loan more than 48-60 months.

 

[BroncoA512021]

Here come all the financial advisors

Most people here need one. Too many emotional buyers, not financially educated ones.

 

[Sherminiator]

Most people here need one. Too many emotional buyers, not financially educated ones.

Isn't that the case for most things that aren't a necessity?

 

[broncoj11]

Oooffppphh. I looked it up after I made the post and you're right.

That's gross. In my opinion, if you can't afford a 3 year loan, you can't afford the vehicle. I could see someone considering a 5 year loan if it's an unexpected purchase and they absolutely need it for their family.

But for the Bronco, which is more of a "weekend" vehicle... eh... going to have to agree with @YULQQKN4 if you are going longer than 60 months you probably shouldn't be buying the vehicle.

Yeahhhh it’s rough. I actually asked my dealer to hold my truck for a month when it comes in to give me a chance to knock out some debt to have some flexibility to account for a higher interest rate. I’ll refi when things get better… if they get better lol

 

[Techun]

If you look at historical date, interest rates are still "low". Purchase what you can afford and not what you want. Buy an appreciating asset like real estate.... And NEVER EVER take and auto loan more than 48-60 months.

You wouldn't take an 84 month loan at 1%?

 

[rtazz17]

Oooffppphh. I looked it up after I made the post and you're right.

That's gross. In my opinion, if you can't afford a 3 year loan, you can't afford the vehicle. I could see someone considering a 5 year loan if it's an unexpected purchase and they absolutely need it for their family.

But for the Bronco, which is more of a "weekend" vehicle... eh... going to have to agree with @YULQQKN4 if you are going longer than 60 months you probably shouldn't be buying the vehicle.

makes no sense. Mortgages are 30 yrs. Maybe if you cant afford to pay 50% of a mortgage you cant afford it? Maybe if you cant afford to pay your college tuition then just dont go? Some people are not rich and need a dependable car to get to work. Not everyone has the security you apparently have.

 

[Sherminiator]

You wouldn't take an 84 month loan at 1%?

So many different variables out there-who wants to be paying $400+ a month or whatever for 7 years? I used to replace my cars every 8 years or so...I'd rather have 3-4 years of no payment to save for the replacement. But to other people, that is nothing in their expenses.

 

[Fmuguira]

least we don’t live in the 80’s, where rates

At least not yet ….. I remember the other big joke when back in the 2008-2012 market when everyone said “ Real Estate always goes up” … guess what, that s not turn either. People who sat theMortgage debacle out back then and bought later often got properties for 40-50% less. That was a 2-3 short years.

Remember, the time to buy is when there’s blood in the streets. Me thinks that time is coming around again …..

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