Yeah, rates are insane right now. Last time I bought a vehicle was in 2017 and I got a 72 month 2.49% on a used truck. I could have paid cash at the time but wanted to keep money in the market as I was preparing to buy a home, but I did pay it off in 2 years.

I think this time around I'm going to be paying cash or mostly cash just because of how bad the rates are.

 

The rates are not insane. They are more normal. The rates we have had for all of this time are insanely low, we just became accustomed to that.

 

Lol driving fast is fun but doing it so much, at least for me, dulls the experience. Wonder how much those supercharged R8's go for.

We will be entering a recession. There is no doubt about that. The US cannot sustain itself the way it's been going.

I agree, we've been spoiled by rock-bottom interest rates. People with credit in the mid 600's could get a rate of 5% without much difficulty a couple years ago, as someone I worked with at the time experienced. I don't think he even put any money down, he just found a credit union that approved his application. Now that rate would be easily double.

 

I have always just paid cash. Works for me

Rates are still higher than last 20 years. And inflation is worst in 40.
eidt: OK I can see how you view them as more normal.

 

Rates aren’t higher than they have been in 20 years, definitely higher than we have seen since the Great Recession. All of the QE they have been doing since then is what has resulted in those low rates.

2.5% or 3% rates are not normal. 6-7% rates are a whole lot more normal.

Car loans, I remember the rate on my first car was nearly 9%, and that was excellent credit (my parents)

 

Correct. Interest-rates have been so absurdly low, so long, that what is historically normal (mistakenly) looks like gouging by people who are uneducated in economics or unaware of the past.

Now, if you REALLY want to see some rates that were insane (by American standards), go back to the Jimmy Carter years of the late 1970s (I lived through them as a young adult). 16-22% was more or less the norm. The PRIME rate (which is regulated by the Federal Reserve Board as a base-rate for banks) reached 21.5%

What an era.....you paid double-digit interest for a new American car that was only half-assembled at the factory, one-quarter-engineered in the labs, and that started falling apart on the way home to your driveway....all the while Lee Iacocca and Roger Smith were doing slick, smooth-talking TV-ads on Detroit's "newfound" quality. And we wonder why Toyota and Honda took over the market back then.

 

Yep, 8 or 9% is around what my parents had on their vehicles in the 90's and they always had excellent credit.

 

banks rates for mortgages. Highest in 20 years

https://www.superbrokers.ca/tools/mortgage-rate-history

 

Simple....that is because inflation itself is the highest it has been in twice that long (40 years). And rates may (?) have to get still higher to finally tame this inflation. There is simply no economically painless way to get a hold on the kind of inflation we have seen in the last 2-3 years.

And higher rates are actually benefitting a lot of people right now....those who have not been getting any appreciable returns on their fixed-income investments (bonds, CDs, Money-Market, etc...) Now, they are finally starting to earn something.

 

Saw a beautiful LX470 at work today.

 

For those of us who made our purchases back in the 70's/80's, rates today for vehicles and homes are much lower than in previous years. As stated above, rates have been historically low for several years. I found this chart for mortgages, of which all other loans including vehicles would pretty much follow. Our mortgage in the 80's was at 14%, which due to good credit, was below the average of18% being charged at the time. Average over this period seems to be around 5% :

 

3.25% here.

My friends and I all joke (but we are serious lol) that we are stuck in our houses. No way are any of us paying double the interest for anything new.

 

Yeah. Beautiful LX. Best generation IMO. Best Lexus ever made.

 

Debatable for sure, it's absolutely one of the best.... no questions asked.

They do still look beautiful especially the late facelift ones, and the ones I see are always in good shape.

The front facias of those are gorgeous and elegant, I've always thought that.

 

speaking of getting a car, my santa fe work vehicle lease is up next feb. the dealer is already sending me letters and emails saying they want me to trade now to something new for 'no cost'
i guess they want the used vehicle.

my santa fe has 20k mi. and the buy out next feb is 26k. that will likely be under book value.

i don't know what to do.