Quote:
Originally Posted by SeattleDude
Seems like Price at the pump certainly does not affect people that are trying to buy a new 4Runner. Searched high and low got on multiple wait lists and all of the 4Runners that come on Allocation are already Pre Sold (at least at all of the dealerships that will sell them at MSRP without Markups)
|
Well the cost to fill your tank is only a part of it. It's also the cost of everything that it affects which is taking a while to truly manifest combined with these sanctions. For example if you plan on building a house you'll find out how much plywood comes from Russia. How much it now costs truck drivers to bring it to the builder supply. How much ammonia, potash, urea farmers need comes from Russia. How much gas farmers use to grow food. How much gas truck drivers use to get a jug of milk to the supermarket. How many people's jobs are subsidized by frivolous consumer debt. All those will start eating in to vehicle purchase budgets.
Not many people buy new cars for cash or even bother to calculate the overall cost (purchase price, total interest, tax, registration, insurance, maintenance). They just look at the monthly payment. The fed started raising rates and I think they said they will increase at the next 6 meetings. To beat inflation they will have to raise to the equivalent of 7 or 8% real world inflation. That gets you a lot less vehicle for the same monthly payment. Lenders should start to tighten requirements too.
I dunno... my feeling is we've been due for a deflationary collapse for ages. The stuff you don't really need is going to be cheaper (if you have liquid cash, true leverage like owning productive assets, or your income paces inflation somehow). The stuff you need to survive will be more expensive.
TLDR; good for savers bad for borrowers.