While on the surface the US economy has been chugging along from GDP-crashing "snow in the winter" to GDP-cratering "warmer|cooler than expected weather in the spring|summer|fall", with bouts of GDP-boosting inventory accumulation inbetween, in recent months two very disturbing trends about that all important dynamo behind the economy, the US consumer, have emerged.
On one hand we wrote three weeks ago that a "shocking" 77 million, or one third, of Americans face debt collectors: a statistic which crushes any suggestion that US household credit is substantially improving based on trends in 30, 60, or 90-day delinquency, as it means that the real pain is not at the near-end of the default/delinquency timetable, but the far end, which incidentally has just as dire an impact on one's credit score as a plain vanilla default (and explains why none other than Fair Issac has jumped in to "adjust" its credit methodology to artificially boost FICO scores of these millions of Americans).
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Can't sell new cars without them.Only retirees with pensions and gov't workers can afford them.
ReplyDeleteCan't understand how anyone can afford a car or truck over 30K
ReplyDeletePrices are high and they have finance for up to 10 years just to make the payments. I haven't bought a new car since 2003 because of this. My newest car is now 5 years old and I'll just have to keep it until if falls apart.
I have been in auto sales for many years. It's NEVER wise to purchase a New car. Always look for a used with low miles. Be sure to obtain a history online and of course be sure it's been inspected. I like my mechanic friends to take it up on a lift and give it a thorough check.
ReplyDeletemy current car is an 03 Toyota Camry and I take very good care of it. I will drive this car until the wheels fall off. love NO car payments...
I always buy new and in cash. Am I rich? No. Over 20 years ago, after I paid off my first car loan, I kept making car payments to myself. Separate account only for car fund. Over the years, I have bought several new cars but only when I have cash in hand. Get much better deals at the dealer with cash and not paying the bank any interest. Happy to be debt free!
ReplyDeleteThe best feeling in the world was being able to walk into a dealership and write a personal check for a vehicle. I'm far from rich but thrifty with money. It's nice not having a car payment with interest.
ReplyDelete