Yesterday, 07:59 PM | #1 |
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Whoa the Fed Cuts rate by 50bps
Hi All,
Don't want to bring up boring economic stuff up on a car forum but for guys who plan on financing their cars (yours truly does) this can be a big deal. I was expect a 1/4 of a basis point. Will be interesting what impact this has on car loans. What do you guys think? |
Yesterday, 08:09 PM | #3 |
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I am not 100% sure but someone posted what they saw in a thread the other day and it was lower than my credit union. Currently, my credit union is offering 60 months at 6% and the post in that thread had BMW financial at 5.45% (I think). It was def a decent amount lower than the 6% my credit union is offering.
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IamJoe253.50 |
Yesterday, 11:32 PM | #5 | |
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Today, 06:42 AM | #6 | |
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Will auto companies give all this 1/2% rate cut to its customers who finance/lease cars? Probably not. But still I believe most of it will be used to offer lower rates. With car lots full of unsold inventory car makers would be foolish not to lower loan/lease rates. The flip side is even before the rate cut CD interest rates were down. I had a 10 month CD mature that was earning 5.18% (APY) that when I renewed it earlier this month my bank was only offering a 5 month CD for 5.12% APY. I have CD that matures next month and I would not be surprised that even that 5.12% APY 5 month CD will no longer be available. For a 10 month CD the bank offered an APY of 4.85%. |
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Ronin761314.50 |
Today, 07:23 AM | #9 |
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Yup. They’ll get their 10lbs of flesh.
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two_three_two1123.00 |
Today, 10:06 AM | #12 |
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Luckily in Canada we have Tax Free Savings Accounts that short or long term investments can be placed in and taken out of to avoid tax on any gains, as long as you don't exceed the account headroom on an annual basis (the Government will get nasty with the penalties if you day trade in such an account!).
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Today, 10:23 AM | #13 |
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RussV149.00 two_three_two1123.00 |
Today, 10:53 AM | #14 |
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I think it's an indication that the economy is slowing more than they expected and they want to do everything they can to help their preferred candidate get elected.
Bigger picture, it's pretty easy to justify financing a car when the financing rates are literally zero and your money in the bank is earning zero. This was the case in the recent past. Even with the current reduction, there's now still a spread of about ten percent between what you're paying and what you could be earning. That's terrible from a long-term wealth building standpoint. I think that it's best to sacrifice for your financial future by not financing cars. |
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BroDoze1517.00 |
Today, 11:02 AM | #15 |
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Unless you can make more in the market than you you lose on the loan
Gold stocks have been great lately and I think that will continue I will probably take out a small loan, maybe 20k - good for my credit rating |
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Today, 11:21 AM | #16 | |
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I don’t finance cars but totally understand younger folks with kids, mortgage, etc. having to do it. I’m old enough to remember 3 year loans then 4 then 5…. What’s the longest term available now? Just curious. |
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