[Wyzz Kydd]

Originally Posted by Junction65

81 million* voted whole-heartedly for the current situation/economic struggle so we wouldn't have "mean" tweets.

That's what they say.

[gpskinzhut]

Just had to settle for 7.25 on a new Jeep. The Tacoma I traded in was at 2.5. That still hurts.

[ST1LE]

Originally Posted by ember1205

I used to get a new vehicle every couple of years.. Drove about 25k/year and racked the miles up quickly, so I was always swapping out to a new one to ensure I had full coverage for anything that went wrong because I drove my vehicle for work (mileage offset helped with some of the financials of it, too).

Current truck is a 2015. Just passed eight years old, 100k miles, and has gotten one set of tires, a couple of sets of brakes, a condenser, and a high pressure fuel pump repair done to it (not counting regular maintenance that I've done over the years). I need tires, the engine is due for a "tune up" (plugs and wires, predominantly), the transmission should probably be flushed, and the differentials really should be being considered for fluid changes as well.

Given the potential amount of money that could end up going into this truck, and considering that I now drive closer to about 10k-12k/ year, trading for a new truck now potentially sets me up to not have to worry about another new vehicle (for me) for a decade. I don't love the idea of the cost, but it's only going to get MORE expensive the longer I wait.

Yup, I imagine I will be exactly where you are in 5 years or so with my Jeep Grand Cherokee. That will be the 10 year mark for the car as well, and I am sure the troubles will start to pile up and the extended factory warranty will be out at that point too.

Gone are the days of buying things because I want them, buying out of need only in this environment, with all extra income paying myself first. Sounds like you have been executing a similar strategy yourself, with very mindful decision making.

[ST1LE]

Originally Posted by Wyzz Kydd

That's what they say.

Yeah....more than any other president ever...doubt it.

[plus1zero]

Yep, it's awful. I had to get out of my Raptor because it was having issues and traded for a 2020 AT4 locally. The interest rate was 10%, it was like 4.3% on my Raptor from 2021. My wife's wrangler is 2.9 from back when she got it in 2020.

It made me sick to have a 10% rate, but even my CU told me the best they could do was 9.5%, and they require a lot of hoops to go through. I ended up jumping last month on a new Sierra with a 4% rate and my payment is cheaper on a brand new 23 than the 2020 I had used with 60K miles due to the rate being that significant. Needless to say, I trade often, but I have absolutely no desire to get into anything else right now. I've always been used to 2-3% rates, and knowing the "normal" for even good credit is 10% is not a good feeling. The best my CU was offering was 5.9%, and that was for 36 months.

[plus1zero]

Originally Posted by nikerret

Oh, good. Everything is on track, then. I’m buying a Camaro when it gets to the dealer…..

You can always refinance it when rates come down. Whenever that may be...

[plus1zero]

Originally Posted by ember1205

We HAVE to be close to a tipping point. Unemployment jumped in August more than expected. It will be interesting to see if it trends down for each of the next two months and to what.

I'd be happy to trade my truck and take a 36 month loan at 1.9 on the balance if I could find a Sierra that I wanted to buy. Sure, the payment is $1200/month, but I make out better by earning 4.5% on my money in the bank while paying 1.9% to borrow.

The Silverado that I like is a 2024. While the dealer is offering a good discount off of sticker through the end of the month, that would get completely wiped out with a 9% interest no matter how long I financed for. I would be far better off to just write a check for the balance after trade-in.

GM has had some decent incentives, they seem to go every other month between Sierra/Silverado. Last month, my dealer had $4500 off of their remaining '23s and then I got an additional $3500ish from GM by trading in an elligible vehicle. I was a little upside down on the 2020 I had but with those incentives, it evened it out. Not the happiest with it, BUT I was happier to not be paying such a huge interest rate.

[Chris Durant]

Originally Posted by MT-SS1LE

I thought the 6% I got back in June was outrageous. I don’t care how many times the Democrats indict Trump with BS charges, he has my vote. The economy was 10X better than under the embarrassment we have now. And you ain't seen nothing yet if he is re-elected.

Trump would never let interest rates get like this, nor would he let gas and oil get like this either.

My power bill for August was almost double last year, gotta love the idiots currently in charge.

[SOCAL.M6.ZLE]

I am very reluctant to mix economic and political options, with my favorite hobby forum, but I can't resist. Disclaimer; I am not in the financial industry... but my general understand of markets conflicts with many of the comments above, so I wanted to share my thought... take them for what they are worth.

1. Interest rates are rising to curb inflation...
2. The US inflation rate, is NOT linked to who is in office, the US inflation rate largely tracks (although lower than) the global inflation rate... see image below.
3. Inflation happens when labor costs go up, and or business start charging more for their goods and services.
4. Raising rates is intended to slow consumer spend (which it clearly is) and that is suppose to pressure business to lower the cost of their goods and services.
5. Yes, terrible time to borrow money, best to save and pay cash for everything but your home.
6. Enjoy the 5% + interest rate on your high yield online savings account... I use CIT bank.
7. No matter which terrible president is in office, neither can control the prime interest rate... we rely on the (FOMC) Federal Open Market Committee. A group of 12 individuals that we trust to help steer our central banks prime rate and alot more...

FOMC explanation: https://www.federalreserve.gov/monetarypolicy/fomc.htm
What causes inflation: https://www.investopedia.com/ask/ans...ne-gain-it.asp
Federal Reserve vs. President: https://www.bankrate.com/banking/fed...eserve-powell/
Global Inflation Trends: https://www.imf.org/external/datamap...O/WEOWORLD/USA

How rates affect inflation...

[jamala00]

Originally Posted by ST1LE

I've back out of the consumer market entirely. Things are messed up these days, more than just rates, and I just don't feel like participating in a system that seems to be rigged against me. Corporations, including the one I work for, making record profits while people struggle more than ever.

Agreed...!

[Chris Durant]

Originally Posted by Junction65

81 million* voted whole-heartedly for the current situation/economic struggle so we wouldn't have "mean" tweets.

Please give us the great hair and mean tweets back, PLEASE

[GM-ACE]

Originally Posted by SOCAL.M6.ZLE

I am very reluctant to mix economic and political options, with my favorite hobby forum, but I can't resist. Disclaimer; I am not in the financial industry... but my general understand of markets conflicts with many of the comments above, so I wanted to share my thought... take them for what they are worth.

1. Interest rates are rising to curb inflation...
2. The US inflation rate, is NOT linked to who is in office, the US inflation rate largely tracks (although lower than) the global inflation rate... see image below.
3. Inflation happens when labor costs go up, and or business start charging more for their goods and services.
4. Raising rates is intended to slow consumer spend (which it clearly is) and that is suppose to pressure business to lower the cost of their goods and services.
5. Yes, terrible time to borrow money, best to save and pay cash for everything but your home.
6. Enjoy the 5% + interest rate on your high yield online savings account... I use CIT bank.
7. No matter which terrible president is in office, neither can control the prime interest rate... we rely on the (FOMC) Federal Open Market Committee. A group of 12 individuals that we trust to help steer our central banks prime rate and alot more...

FOMC explanation: https://www.federalreserve.gov/monetarypolicy/fomc.htm
What causes inflation: https://www.investopedia.com/ask/ans...ne-gain-it.asp
Federal Reserve vs. President: https://www.bankrate.com/banking/fed...eserve-powell/
Global Inflation Trends: https://www.imf.org/external/datamap...O/WEOWORLD/USA

How rates affect inflation...

Thank you! We can see from previous comments, not everyone was paying attention in Economics class, but boy howdy are they invested in social media

[1fastz28]

Originally Posted by Chris Durant

Trump would never let interest rates get like this, nor would he let gas and oil get like this either.

My power bill for August was almost double last year, gotta love the idiots currently in charge.

Your power company is NV Energy i assume, as they provide power to the Las Vegas area. That company is owned by Berkshire Hathaway (Warren Buffet) Whose quarterly profits last quarter were 36 BILLION dollars.

https://www.nytimes.com/2023/08/05/b...-earnings.html

[ember1205]

Originally Posted by ST1LE

Yup, I imagine I will be exactly where you are in 5 years or so with my Jeep Grand Cherokee. That will be the 10 year mark for the car as well, and I am sure the troubles will start to pile up and the extended factory warranty will be out at that point too.

Gone are the days of buying things because I want them, buying out of need only in this environment, with all extra income paying myself first. Sounds like you have been executing a similar strategy yourself, with very mindful decision making.

My days of buying on want are largely over because I'm focused on ensuring I actually can retire someday.

My wife and I are very fortunate to both have well-paying jobs that have shown stability over the last decade. Even with my company recently executing a very large number and percentage of total workforce in layoffs over the last year, I have so far remained in place and continued to be seen as useful to the organization. The only debt we currently carry is a mortgage and it has been that way for a few years. Nothing spurs you to not spend money like achieving "zero debt" (we aren't at zero, but we could pay off our mortgage if we wanted to - it makes no financial sense to do so, however due to varous factors).

Originally Posted by plus1zero

GM has had some decent incentives, they seem to go every other month between Sierra/Silverado. Last month, my dealer had $4500 off of their remaining '23s and then I got an additional $3500ish from GM by trading in an elligible vehicle. I was a little upside down on the 2020 I had but with those incentives, it evened it out. Not the happiest with it, BUT I was happier to not be paying such a huge interest rate.

Their incentives have largely been on 2023 models (like you mentioned) and that hasn't helped me because there isn't any inventory near me that matches what I'm looking for. :(

Originally Posted by SOCAL.M6.ZLE

I am very reluctant to mix economic and political options, with my favorite hobby forum, but I can't resist. Disclaimer; I am not in the financial industry... but my general understand of markets conflicts with many of the comments above, so I wanted to share my thought... take them for what they are worth.

Also not an economist or "in the know" as it pertains to the financial industry. I agree that a) politics has no place here and b) interest rates and politics are not related like people want to believe they are. If memory serves me correctly, the most meaningful data that has been pulled together actually shows that an economic upturn OR downturn under a new presidential party from the past is predominantly associated with the prior party's time in seat. In other words, the boon under Clinton had more to do with what Reagan and then Bush had done than anything that Clinton had done.