$$$ the economy thread $$$

[Donalex]

Now that rates have considerably risen since even six months ago, I'm reposting on how to pay less interest with minimal pain:

To get around that, compute your payment with your desired rate. Take your current rate payment, subtract your desired rate payment, and add the sum of that to your actual payment. You'll get your "effective" rate over the life of your loan because the interest is calculated on a descending loan balance.

If you pay more on principal each month, you'll pay less interest overall.

Payment at 4.99% = 547.67
Payment at 1.99% = 517.67
Add $30 to your 547.67 payment each month to pay an effective rate of 1.99% over the life of the loan.

 

[Houston.RZ34]

Auction Lots in Houston are now at critical mass, willing to bet it'll be like that elsewhere. Buddy of mine was able to play lowball with a dealer on a new Korean SUV.

Example of real estate standing still....Houston is a hot market, this is the hottest part of town since the COVID hit, School District is #2 in Texas.

> https://www.har.com/homedetail/7426-rosepath-ln-richmond-tx-77407/2459284?lid=7089283
In 2019 this house was worth 250-275k at best.

> https://www.har.com/homedetail/21103-breezy-shore-ln-richmond-tx-77407/2460931
In 2019.....I'd guess 300-325k at best.

 

[Evolution]

That second house would be around 1.5M in my area. Time to move to TX!

 

[Houston.RZ34]

That second house would be around 1.5M in my area. Time to move to TX!

Why do you think the rest of y'all are already here?! lol

That area is the hottest suburb right now in Houston with tons of "Stealth Wealth", it's also extremely diverse - it's beautiful really.

 

[Houston.RZ34]

Supras are 40-45k
Z4s are 50k
C7s are 35k again

"It's beginning to look a lot, like, CHRISTMAAAAAS......toys in every stoooooore" lol

 

[takemorepills]

Supras are 40-45k
Z4s are 50k
C7s are 35k again

"It's beginning to look a lot, like, CHRISTMAAAAAS......toys in every stoooooore" lol

Unless you live on the west coast or in Canada

 

[Donalex]

If, and only if, you have the means to hold on, a recession can be a good thing.

Those who are marginalized, not so much.

 

[therumblewagon]

Supras are 40-45k
Z4s are 50k
C7s are 35k again

"It's beginning to look a lot, like, CHRISTMAAAAAS......toys in every stoooooore" lol

I am very close to buying something else - they literally just got it today - but to your point, I'm hesitating. I could put a deposit on it to hold, but don't know how long they'd be willing to sit with it. I think they're being a bit pushy too, perhaps because of what's coming.

Wondering how much negotiating power we have now, too, or will in the near future.

 

[Donalex]

Wondering how much negotiating power we have now, too, or will in the near future.

There's a saying in the car bid-ness:. "You can't get it unless you ask."

Turn that around and use it on them. ?

 

[Brickyard]

In the U.S., New Car Sales are Down, and Q4 is projected to go out on a whimper with consumers shying away from the plaid coated sales holes on the Stealership's lots ~

New Car Inventory is limping up but still at historically low levels ~ not much for consumers to choose from out there still ~

Toss in the uncertainty of gas prices and the rapidly increasing never ending price spikes of everything ~ especially Energy, & Food, Basic Survival Stuff . . .

The Global Economy is indeed in the Toilet . . .

Consumers have no Savings, and are Expanding their Debt just to get by . . .

Sadly, there seems to be no Magic Wand to quickly resolve the sad state of the Global Economy . . . U.S. Mid Term Elections are 3 weeks away ~ Just sayin'

 

[Houston.RZ34]

If, and only if, you have the means to hold on, a recession can be a good thing.

Those who are marginalized, not so much.

You are telling the truth, this is the first time I've ever been on the other side of the fence.

 

[Houston.RZ34]

I am very close to buying something else - they literally just got it today - but to your point, I'm hesitating. I could put a deposit on it to hold, but don't know how long they'd be willing to sit with it. I think they're being a bit pushy too, perhaps because of what's coming.

Wondering how much negotiating power we have now, too, or will in the near future.

I'd wait another 6-12 mos, things are just getting started.

We didn't expect things to go the way they did in dealers favor, we were seeing things we've never seen before in our lives.

I honestly think we're going to see the same absurdity again but this time, it's going to be in our favor.

 

[Z06fan]

I'd wait another 6-12 mos, things are just getting started.

We didn't expect things to go the way they did in dealers favor, we were seeing things we've never seen before in our lives.

I honestly think we're going to see the same absurdity again but this time, it's going to be in our favor.

I agree - this is just the beginning and prices will continue to drop. Unfortunately, we're seeing the beginning phases of what the fed is hoping to do......impact jobs, prices, and spending. The good news is that car lots will have more cars at better prices.

 

[Donalex]

You are telling the truth, this is the first time I've ever been on the other side of the fence.

That being said, let us be mindful of those around us.

I've started giving larger than normal tips, but always by cash to the person assisting me.

 

[therumblewagon]

There's a saying in the car bid-ness:. "You can't get it unless you ask."

Turn that around and use it on them. ?

They won't budge on price - "confident they can get it" - so I'm gonna take that as a sign from the universe to sit tight. Thanks for the input, y'all cc @Houston.RZ34