Anyone concerned about rising auto interest rates and decreased used car values?

[kkgg]

I might be worried for my other vehicles,
but I can confidently say Maverick is a recession proof truck.

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[huunvubu]

I might be worried for my other vehicles,
but I can confidently say Maverick is a recession proof truck.

Especially the Hybrid.

 

[Flight Test]

Short answer is no. I am not concerned with used car prices because I will not be trading anything. I may pay cash for the Mav. That is not always a good strategy, depends upon if interest rates are below the rate of return on my investments. I tend to pay off any loans within a year or two anyway. Always good to have cash money in the bank..

 

[1929]

Gap between new vehicle pricing & used is a concern. Dealers inflating prices on new vehicles above MSRP is concern. Fed increasing interest rates will cool consumer spending (good).
Government approach to EV is concern.

 

[Old Ranchero]

Nope, none of the above.

 

[SLINGSHOT]

Counting on it to thin the order numbers.

 

[AutobahnSHO]

I'm with BuddyS.

I used to pay cash for 10yr old cars and kept them for a long time. Even though I've paid to have 2 motors replaced- the majority of my cars the last 20 years have cost on average $150/month (purchase price plus big repairs).

Recently while waiting for Mav we paid cash for a newer car, but still used. By staying out of debt you can make money work for you rather than a bank.

 

[Donaldw]

I'm here because our truck was stolen and totaled last summer. Paid 14,500 for it (used) 19 years ago. Insurance gave us 16,500 for it. That covers a good part of the Maverick. Rest will be company cash. I've told our dealer we don't need financing. I *think* our dealer will play it straight like they all should. Meanwhile we are being careful with our 99 Forester with 154k. Recently had to replace the parking brake cable and they had to reach to Latvia to get one. I wonder what part of a dealer's profit on a sale is financing.

 

[scottp01]

The best way to mitigate issues like this is to buy a vehicle and keep it for 10 years or so. Getting a new vehicle every couple of years is a horrible financial pattern -- you just keep paying on payments and eating depreciation. Your actual cost becomes $1000 or more a month on a 40K car that loses half its value in 4 years. Buy smart -- something that will fit your life for a decade -- and enjoy a few years of no payment and little depreciation. Then you'll be in a much better position to get the next vehicle when the time comes.

That works great until you're due for a new vehicle in 2022, and you order a Maverick!

 

[OrangeBlue]

I'm confused. You say you don't owe much on the 2019 Forester, but you're also worried you won't have any equity.

How much do you owe?

I have a 2023 Hybrid Maverick on order but I’m concerned it might not be worth it come 2023 to make the purchase.

I have a 2019 Forester that I plan on selling before I buy the Maverick but if I can’t get any equity for it, my payments will not be affordable.

I am locked into a great rate on my Forester and I don’t owe much on it.

 

[gte105u]

I'm with BuddyS.

I used to pay cash for 10yr old cars and kept them for a long time. Even though I've paid to have 2 motors replaced- the majority of my cars the last 20 years have cost on average $150/month (purchase price plus big repairs).

Recently while waiting for Mav we paid cash for a newer car, but still used. By staying out of debt you can make money work for you rather than a bank.

Depends on your rate and how you make your money work. When I bought the Rogue I mentioned, I was up in the air on financing or not. Got a '17 with low miles so could have done either. I know with my wife's driving it'll last 15+ years.

Was able to get 3.5% financing. I could have pulled money out of my 401k as a loan to myself. But I'm paying 3.5% interest and in general getting 6%-10% per year. So with this leverage I am making money with the loan vs cash. If things really turn bad I'll pay off the note with a loan to myself and pay myself interest instead of the bank.

 

[skadizzle]

I ordered my Maverick in October 2021 and at the time my current 2018 Rav4 was worth more than I paid for it 4 years prior. I am still making payments on it and wasn't worried because each month the principal dropped off and my trade-in value wasn't affected much. I was going to get my Maverick and pay less per month and only for a year more than I was already doing with my Rav4.

Fast forward to now. I lose my rates from last year, so I will probably have to add an extra year of payments. My trade-in value hasn't dropped entirely, but I will not be getting back what I would've at the beginning of the year so I am definitely feeling the difference. They need to hurry up and building one of my Mavericks before the bottom drops out entirely.

 

[Mc_Flier]

Both concern me, though not a heckuva lot I can do about either. I'm taking the offensive in saving as much $$ as I can while I wait for the Mav, to pay as much upfront as possible. My ride is a 2008 Ranger, it's gotta go one way or the other. I do think, to your question, some will walk for the reasons you cited. I am also hearing an inordinate number walking unwillingly, because their credit prevented approval.

Nope. Zero percent for three years. Hoping it’s paid off before Brandon leaves office.

 

[14mustangNJ]

Cut unnecessary expenses, budget and increase income.

There are tons of seasonal jobs now. Always can do deliveries, Uber/Lyft, etc too. Easy ways to make a few extra dollars right there.

Take advantage of the time you have before the Mav is built, scrimp and save and have a hefty down payment is what I would do. Interest rates are not going down to 2020 levels anytime soon in my opinion so expecting it to be favorable in 2023 and demand to be high on a 2019 car too, I’d think is a pipe dream here.

Still keep your order because who knows, maybe it does work out. This market barely makes any sense anymore.

 

[Bigbill27]

Considering the first car I financed was for 12% interest (and that was normal at the time) then no I'm not particularly concerned about 5 or 6%.

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