Warning About Dealers And Their Pricing

[RSR]

I'd actually welcome higher interest rates. It would mean my money market accounts might go back to earning 5% instead of 0.05%.

 

[Torvy]

I'd actually welcome higher interest rates. It would mean my money market accounts might go back to earning 5% instead of 0.05%.

With inflation at 7.9% and rising you would still be losing money...even more than 2 years ago with inflation at 2% at saving rate at .05%.

Take that money and invest it in something that will earn more than inflation. Otherwise, spend it on durable goods or better, real estate.

 

[RSR]

With inflation at 7.9% and rising you would still be losing money...even more than 2 years ago with inflation at 2% at saving rate at .05%.

Take that money and invest it in something that will earn more than inflation. Otherwise, spend it on durable goods or better, real estate.

I have other investments with higher rates of return. I use a money market account solely as a savings/checking account for money I want to keep liquid.

I welcome the return of 10-15 years ago when inflation was 2-3%, and money market accounts returned 4.5-5%... before the fed decided they needed to start monkeying around with interest rates and money policy to prop up the economy. If this is the temporary pain that is needed to get there, I welcome it.

 

[Muhammad]

If you guys want to discuss the political side of things please do so in the front porch: https://www.tractorbynet.com/forums/the-front-porch/

 

[TractorNoob39]

Interesting times for sure. X Plan was definitely a factor. Hard to believe we ended up with great deals in these times of dealers having "premiums" above MSRP. The 2020 that I traded in never hit the dealer website. I think they had someone waiting in the wings that scooped it up immediately.
The flip side of the high new truck pricing is the high trade in values. I know that late last summer or early fall I saw a 2017 F 250 XLT Premium on a local dealer's website. It had 27k miles on it and they were asking several thousand more for it than I paid for a brand new 2017 optioned just about exactly the same. Things like that make me wonder how people can afford or get financed a used truck. But I guess they do because nothing seems to stay on the lot very long.

I wondered the same thing. Are banks financing an vehicle that msrp's at 75k but selling at 100k? I feel like we are headed for a big bust at some point.

 

[2manyrocks]

A friend of mine is (was) a real estate appraiser who actually takes the time to analyze each property. He quit doing bank appraisals because he felt like he was trapped between two opposing forces. On the one hand, if he kills a real estate deal because the numbers don't support the deal, he knows he won't get business. On the other hand, if he picks comparable sales that support the deal, eventually things are going to fall apart, and whoever is holding the financing bag will be asking why he valued the property at that price.

What I've seen unethical appraisers do is to pick high comps that aren't really comparable sales at all, but then apparently no one looks closely at the comps to see if they are really comparable sales until the loan defaults. Then the special assets recovery people look at the appraisal and see what the appraiser really did. And probably say nasty things under their breath about the loan officers and loan committees that let this happen.

Present situation looks very like the late 1970s to me. Not good.

 

[Muhammad]

A friend of mine is (was) a real estate appraiser who actually takes the time to analyze each property. He quit doing bank appraisals because he felt like he was trapped between two opposing forces. On the one hand, if he kills a real estate deal because the numbers don't support the deal, he knows he won't get business. On the other hand, if he picks comparable sales that support the deal, eventually things are going to fall apart, and whoever is holding the financing bag will be asking why he valued the property at that price.

What I've seen unethical appraisers do is to pick high comps that aren't really comparable sales at all, but then apparently no one looks closely at the comps to see if they are really comparable sales until the loan defaults. Then the special assets recovery people look at the appraisal and see what the appraiser really did. And probably say nasty things under their breath about the loan officers and loan committees that let this happen.

Present situation looks very like the late 1970s to me. Not good.

Somebody just paid $67,000 for an old Ford Excursion with 100,000 miles on it. What happens when that person can't make the payments? Bank gets it back and gets whatever they get for it an at auction. If that happens to enough vehicles the house of cars falls apart.

 

[Jstpssng]

If that happens to enough vehicles the house of cars

Did you mean "House of Cards"?

I've been saying the same thing about a lot of things. When I bought my Colorado almost 2 years ago I was looking for new but they were nowhere to be found. I was thinking it might be better to wait for things to calm down but kept looking. I drove 170 miles to look at a truck which was just what I wanted, only to be told they had sold it after I called. They had a 2018 with 26,500 miles they had just taken in trade and hadn't been listed yet so that's what I ended up with, te only ting it doesn't have is a rear sliding window.

I sure am glad that I didn't wait, I probably could sell it for more now than what I paid for it.

 

[coobie]

Somebody just paid $67,000 for an old Ford Excursion with 100,000 miles on it. What happens when that person can't make the payments? Bank gets it back and gets whatever they get for it an at auction. If that happens to enough vehicles the house of cars falls apart.

HOLY Moly thats a crazy price. I think we will be headed back towards a 2008 recession but twice as bad.

 

[Jstpssng]

HOLY Moly thats a crazy price. I think we will be headed back towards a 2008 recession but twice as bad.

If the price of fuel goes as high as some say it will, we are in for a rough time.