Hold or Sell

[1929]

Another report today…the Average car loan is 9%! Simply crazy.

Pretty low. Yep. Even a mortgage rate was 15% average in 1990.

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[jim13]

Someone needs to tell this to the dealers. All are still waaaay above MSRP.

Prices will go down when they can’t move vehicles. Highly dependent on location, too.

 

[SLINGSHOT]

A 15 year home loan was 12% in 1985.

 

[Greg_in_GA]

A full size pickup I’ve been interested in is available.

In my state you get a break on the sales tax if on your trade in which could make trading it in more favorable if the dealer does not lowball your trade in offer.

It would be good to also run the numbers on that.

 

[Guv]

Yup, dealers are still trying to get high book but paying a lot less. Capitalism.

Maybe you should try and get you a LADA or a Zil. Not much capitalism with those two.

 

[Ford Maverick Maniac]

Austin, I vote no....at $100+ per tank for a full size, you will save a lot more in gas over the years than a short term profit. Keep in mind that holding onto the Mav less than 1 year is taxed at ordinary income. So if you make $10k, 3-4k of your profit will be given to the fed and state gov. You can't get around this because the DMV reports the sale amount to the gov.

Plus that is a beautiful truck. You are a lucky guy.

Those mountains look like SoCal but even if you live in a state that has sub $4 gas, think about if you have to pay $7 or more per gallon one day for the full size you want to buy. You will probably regret selling your hybrid.

If you get the full size and keep the Mav, you will have the best of both worlds. Use the Mav as a daily and for road trips, use the full size when you need more capability. The gas savings of not having to drive the full size everywhere will probably pay for the insurance on both trucks.

I do not have a full size, but my channel's video explains why I get the best of both by owning Mav hybrid and AWD versions which I ordered summer of 2021, way before the long line. Hope this helps.

 

[Gmood1]

Another report today…the Average car loan is 9%! Simply crazy.

9% is insanity for a person with decent credit history! I wonder where those folks obtained their loans?
My credit unions are in the 5% range.
I'm glad I bought mine before the rates skyrocketed.

Banks will have to pull back eventually, if they want to stay in business.
I'm betting 0% deals from the auto manufactures will be in full swing after Christmas, if not before.

 

[Saul T Knutz]

He left out the months for that 9% loan. 9% for 24 months? Yeah that's shitty...9% for 96 months, not so shitty. I suspect a lot of buyers are taking longer term loans to make their monthly payments lower due to prices on some vehicles being higher...

 

[jsus]

9% is insanity for a person with decent credit history! I wonder where those folks obtained their loans?
My credit unions are in the 5% range.
I'm glad I bought mine before the rates skyrocketed.

5% with qualifying credit history.

Many don't qualify for the advertised rates.

 

[B2000]

In my state you get a break on the sales tax if on your trade in which could make trading it in more favorable if the dealer does not lowball your trade in offer.

It would be good to also run the numbers on that.

In Missouri you get the tax break whether you sell yourself or trade it in. You just have to buy the replacement vehicle within 6 months and do the paperwork- there is a form for the buyer to sign.

 

[Gmood1]

5% with qualifying credit history.

Many don't qualify for the advertised rates.

I know all too well about the bate and switch.
Hopefully folks shop around and not take the first offer handed them.
Rates vary by area as well as by the financial institution.

He left out the months for that 9% loan. 9% for 24 months? Yeah that's shitty...9% for 96 months, not so shitty. I suspect a lot of buyers are taking longer term loans to make their monthly payments lower due to prices on some vehicles being higher...

No doubt about that. You have a valid point.

 

[MakinDoForNow]

Another report today…the Average car loan is 9%! Simply crazy.

I paid almost 14% in 80's for house but was cheaper than renting. Did some fancy rehabbing and traded out of it. Was still paying almost same interest but balance was less so lowered monthly payment. Had to pay ordinary income tax on profit because did not hold long enough. In that time of my life I learned that it's not the interest rate that's the most important but the length of time you owe the money. Do anything to increase amount paid monthly to lower principal balance. 2nd job, overtime, only eat one egg at breakfast, it adds up and lowers interest/principal ratio of payment.

 

[atomguy245]

I think the ship has sailed on making big profits flipping vehicles. People are realizing that the economy has shifted, and interest rates are really becoming noticed. You might make a couple grand after all your expenses, but that's it.

 

[Ford Maverick Maniac]

I think the ship has sailed on making big profits flipping vehicles. People are realizing that the economy has shifted, and interest rates are really becoming noticed. You might make a couple grand after all your expenses, but that's it.

I agree Doug. You will save a lot more on gas costs over the years than a quick flip that automatically triggers paying extra income tax on the profit.

 

[rlhdweman]

A 15 year home loan was 12% in 1985.

I remember paying 15% for a used car loan in 1984, by 1986 it was 17% on a new car loan. Good old 'trickle down economics'.

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