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Originally Posted by Tractionless
If you can wait, it will be a buyers market very soon as prices are already coming down due to interest rates and the economy.
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Quote:
Originally Posted by vtec to vvel
I'm in mortgage lending, and IMO, the real estate market has an influence on trends for the other industries that has buyer-financing involved.
Much like the real estate market, the general consumer market has shifted for sure over the past few months due to rates rising paired with inflation, however, global supply chain is still an issue, meaning it would be unlikely to be a buyer's market in the near future. Even if the supply chain issue some how magically got resolved, the Feds are on an aggressive rate-raising projection (7 rate hikes in 2022, with 4 of them being 75 bps vs the traditional 25 bps), so unless you are a cash-buyer, being qualified for financing will most likely be a challenge (higher rates means you get qualified less of a loan amount, if you qualify). Keep in mind, you also have a Fed Chair, Jerome Powell, that does not understand inflation, admittedly: “We now understand better how little we understand about inflation” - 06/2022.
Regarding the economy, there is no telling what will happen, esp. with what the Feds are doing, but, many economists are projecting that a recession is in place for sometime this year. If a recession occurs (which historically has happened each time the Feds have tried to fight inflation), this is when the Feds generally lower rates to stimulate the economy via quantitative easing, but again, you still have the supply issue to deal with. So while rates could be lowered and you could be qualified for more of a loan amount, the prices would theoretically hold steady to what they are now due to supply/demand.
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As per my post earlier, don't expect vehicle prices to come down anytime soon. I typically believe only about 25% of what the media reports, and the article that came out this AM below pertaining to auto sales seems to cover a very few of the basics at least (again, take the media with a grain of salt).
Auto sales are falling due to rising rates and less qualified buyers. Prices generally are not decreasing, which come from supply chain issues, and profits are steady/rising despite higher costs (businesses will never take a hit on their margins and bottom line). Those that qualify for an auto loan will pay more for the vehicle itself AND the money used to finance the vehicle.
Some dealerships may offer incentives, but this is done at a local level. But, I would really research this. If dealerships are cutting pricing at inflated levels, there is a good chance the price is still above what they were pre-COVID times.
https://www.cnn.com/2023/01/12/inves...ing/index.html