LexusForever

https://www.cnbc.com/2024/06/25/us-a...f-of-2024.html

mmarshall

Do you yourself have any comments or questions on this issue? We usually don't just post links without any comments.

The new-EV market in particular, right now, DOES appear to be shrinking some, for a number of reasons. In fact, Fisker is filing for bankruptcy...we have a tread on that in the EV section.

LexusForever

I'm looking forward to possible favorable deals for consumers, and hoping to a reduction interest rates.

mmarshall

Interest rates for loans might indeed come down in the second half of this year, but probably gradually.....a quarter or half-point at a time. The level of demand for new vehicles will also play a big role.

jwong77

I'm really pretty worried about the situation where we are having high inflation and also high interest rates. I think it's called stagflation? Sorry not an economist, but isn't there any other levers they can pull to address the situation?

mmarshall

Interest rates (supposedly) drop when inflation does, but that depends on how the Fed views inflation in the economy and what action they deem to be needed. But, even over and above that, auto manufacturers sometimes offer incentives of their own......I've seen it as as low as 0% on loans for those with good credit ratings.

Stagflation, BTW, is another issue.....that happens when prices remain high when the economy is in a recession. We have not seen that since the 1970s and early 80s......and will probably not see it now.

geko29

Stagflation is when inflation is high or increasing, economic growth is slow or negative, and unemployment is high. Only the first of those is true in the current situation. Inflation is still high, though it is decreasing.

And while interest rates are certainly high compared to a few years ago, they're still nearly a full point below the historical average over the past 50+ years. Which for the 30-year mortgage that many of us use as a barometer, has averaged 7.73% since 1971 (currently 6.87%)

mmarshall

Yes....as I indicated above, I still remember the classic stagflation vividly from the late 70s and early 80s. We had double-digit interest rates at absurd levels....almost to Usury-levels under some state laws.

As to the thread-topic (vehicle sales) automakers can, and do, sometimes offer incentives to beat the rates that banks and other lending institution offer on car-loans. I've seen factory-incentives as low a 0% on some low-demand vehicles, particularly for those with good credit rating.

tex2670

Is the EV market "shrinking"? My understanding is that the sales rate was slowing, which I took to mean that there was a saturation point being reached - ie, people who actively want an EV have obtained them, so there may be a plateau being reached. But that's not "shrinking".

Allen K

iTrader: (4)

Overall sales growth is slowing, but the total # of EVs sold this year is still expected to be higher than last year

mmarshall

This video explains it much better than I could do in the short space here.

bitkahuna

iTrader: (20)

that video is so stupid, and the comments are proof of dunning-kruger effect.

and a pure clickbait channel... see other videos: https://www.youtube.com/@the_best_car_content

bitkahuna

iTrader: (20)

video's comment sampling:

> EV's, an illogical solution to an imaginary problem.
> What they want is everyone not driving anymore.
> I'm way too lazy for EV's. I like my cars where they wait till I'm ready to go and not the other way around.
> Buying an EV is the worst financial decision anyone could make. They are very problematic. Very expensive to own. Very expensive to repair. They don't make it thru the warranty period without having issues. My neighbor got sucked into this whole green b.s.. Now he owns an EV that he hates. The EV is sitting out in the driveway unused. A new Toyota Camry ICE vehicle has now replaced it and no one wants to buy the EV from him. He's upside down on it. Repo time. This is so common.
> Things to love about EVs:
1. Child battery labor
2. Range anxiety
3. Risk of garage fires
4. Paying 20k more than a comparable vehicle
5. Battery degredation
6. Poor resale value
7. Reduced performance in cold, highway
8. Higher repair costs
9. Awful charging network experiences in the weather without restrooms
10. Higher insurance rates
11. Replacing tires more frequently
But hey theres a tax credit!
> Never an EV. Only ICE for me and my wife.
> Charging times also have a huge problem in that repeated fast charging shortens battery life a lot. It would appear that this aspect of ownership doesn't have a good solution.
> my brother dumped his preis for chump change and went back to gasoline, he was embarrassed as he raved about it and won't tell any of his family why
> EVs are over priced junk! Hard to repair, short range, few charging stations, expensive insurance, may burn your house down and hurt the environment.
> No desire to buy a stupid EV
> This is the best report on EV issues. The early adopters phase is OVER! No rational buyer will set the pace
> Will NEVER be EV only, by 2035, as planned.
> Conman musk time is over!
> If you want to leave major metropolitan centers, you better take a long a generator, because charging stations simply aren't there.
> Companies are dumping homeowner policies if you buy one of these fire hazards. EV's catch on fire waaaay too often for companies to want the risk.
> ICE till my dying day.
> In summary, impractical and expensive in every way you can think of.
>EV are JUNK! EXPESIVE, Low range and wealth problems hard to do repairs

and on and on...

FrankReynoldsCPA

I'm a known Elon hater and that video looks like BS just from the thumbnail lol.

RNM GS3

GDP is projected to decline this year and next year.
While the job market is still strong, there are more layoffs.
I don’t personally see a huge rate decrease happening maybe .25-.50%

The increased rates have caused increased borrowing costs for companies which then makes them increase prices on their goods/services which ultimately causes inflation.

From a historical prospective - current interest rates are not that high.

Also market is doing well and if for those that have savings, fixed income is still very good.

Regarding car market - i think it may be cheaper to buy new as some automakers are offering 0% rates compared to used where rates can be over 10%.