Interest Rate Increase

[Broncoguy]

I saw interest rates might go up in March this year. Does anyone know what this will do to the price of new/used cars? Should I buy something now or wait to see if the new/used car prices will go down? I am looking at some preowned Broncos but I’m wondering if I should wait and build one.

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[SPITmadFIRE]

If you can predict the market, you're better off than the rest of us -- enjoy your drinks with umbrellas on your private beach!

 

[kevin.gt]

I saw interest rates might go up in March this year. Does anyone know what this will do to the price of new/used cars? Should I buy something now or wait to see if the new/used car prices will go down? I am looking at some preowned Broncos but I’m wondering if I should wait and build one.

I doubt interest rates will go up enough to justify the $10k markup you might spend trying to get one now, off the lot or used. I’d place an order

edit: that said, my vroom and carvana offers have dropped 10-15% on my used car over the last couple months. Perhaps market is cooling, or they’re just making adjustments since wallstreet doesn’t seem to value their growth at all costs model quite as much

 

[thatspecialbeat]

This will be very interesting to watch for those of us playing the Bronco game.

I hope everyone who said they will use the delay to save and lower the amount they need to finance actually saved up.

 

[2021AreaFiftyOneOBX]

Interest rates will not climb that dramatically, that fast. We may see a couple increases in the next year, but we're talking the possibility of a 0.25-0.75% increase on an Auto Loan. Not going to ruin anyone's plans. 5 years from now may be a different story.

-Anonymous VP at anonymous Financial Institution here.

 

[Raptor911]

in theory YES!

so you may not be able to get 1.99% on 60 months. It may go up to 2.29 on 60 months.

I saw interest rates might go up in March this year. Does anyone know what this will do to the price of new/used cars? Should I buy something now or wait to see if the new/used car prices will go down? I am looking at some preowned Broncos but I’m wondering if I should wait and build one.

 

[st3v]

If rates go up, it could potentially lead to higher monthly payments on loans for new/used cars. It might be a good idea to keep an eye on the market and see how things play out.

You replied to an old thread from early 2022, when rates were still at historical lows. Since this thread started, interest rates have gone up dramatically.

One of the comments in this thread did not age well...
Auto loan rates since the original comment:

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