Well! Here’s something I wrote a couple months ago and blithely forgot to post. This was before the Fed decided to start raising interest rates. It’s an interesting idea, if you have a vehicle that’s getting old but still running…don’t be in any hurry to replace it just because rates may rise.
At our networking group, the thought is that we’re seeing a “bubble” in cars comparable to the housing bubble, BECAUSE interest rates are so low. With a 1.9% or 2.9% loan, you incline to buy a WHOLE lot more car than you can actually afford. Growing numbers of people are already defaulting on these loans. And if the economy stumbles — as it inevitably will, for whatever goes up must come down — a huge number of people will default.
Some of the guys suggested waiting a year, on the theory that the market will be flooded with repossessed vehicles offered at a cut rate.
LOL! “Whatever goes up…” It pays to be a cynic: we’re never disappointed and sometimes pleasantly surprised. 😀