Actually turning out to be a fairly awesome string. Well worth the read. Average auto payment has climbed, also average auto loan is now 125% loan to value. Mortgage market is pretty fracked too, sad that only about 1% of Americans can afford to buy their first home. Home values are being propped up as well, a seller will pay money to the buyer in the form of a Rate Buydown in several markets, meaning the sale price does not reflect what the seller is actually pocketing. Anyone buying silver? Still think it is a pretty good idea, but with a worsening economy many do not want to buy even at spot price. Inflation is still the biggest killer of your finances, and potentially it will get worse.
Back to cars and car loans, my wife wanted a Bronco (not the poser version on an escape frame), however lack of supply has led to more expensive prices, I have no desire to be ripped off by a dealership. I will wait, her vehicle is low mileage and gets good gas mileage. Could I trade in my car and buy the Bronco? Yes, but I really like my car in spite of it being a 2019. Then there is the loan, got 0% on mine, and worth more than I paid, so mine is much cheaper than the newer version with less power and no rebates, and no 0%.
Ramsey does have some great advice, he also has some very stupid advice. The Ramsey school of thought would be if you have the cash, pay cash, even if you can get 0%. If you have discipline always get financing that is at or below inflation, and keep the money in your pocket, as well as negotiate a good deal and keep your car till the wheels fall off. As for homes you never truly own it, you will lose a home faster by not paying property taxes than not paying a mortgage, or could lose it to emanant domain, so why put all of your money into it and pay it off faster? I do see the argument if one is at 8% to pay it off faster, but Trump made his real estate $ on leverage, and so have others.
Back to cars and car loans, my wife wanted a Bronco (not the poser version on an escape frame), however lack of supply has led to more expensive prices, I have no desire to be ripped off by a dealership. I will wait, her vehicle is low mileage and gets good gas mileage. Could I trade in my car and buy the Bronco? Yes, but I really like my car in spite of it being a 2019. Then there is the loan, got 0% on mine, and worth more than I paid, so mine is much cheaper than the newer version with less power and no rebates, and no 0%.
Ramsey does have some great advice, he also has some very stupid advice. The Ramsey school of thought would be if you have the cash, pay cash, even if you can get 0%. If you have discipline always get financing that is at or below inflation, and keep the money in your pocket, as well as negotiate a good deal and keep your car till the wheels fall off. As for homes you never truly own it, you will lose a home faster by not paying property taxes than not paying a mortgage, or could lose it to emanant domain, so why put all of your money into it and pay it off faster? I do see the argument if one is at 8% to pay it off faster, but Trump made his real estate $ on leverage, and so have others.