Can I afford a decent 911 for everyday use?
Discussion
R.Sole said:
The comparison is if someone really wants the (car,boat,plane etc) then the salespeople will use any amount of smoke and mirrors to make their commission happen! 
Exactly, but now with the new possibility of negative interest rate financing. For clarity this is Bank finance not vendor finance, in this case a loan in Euros from a Danish bank to a British citizen for the part finance of an Italian built, Maltese ( vat considerations probably) registered boat. Compared to the complexity of that, how long before we see negative mortgage rates - in Euros at least becoming available? and if negative rate finance became available on consumer durables / vehicles etc acompanied by outright negative rates on savings ( instead of negative after inflation, as now) would it make people behave differently? What would be the effect on the value of cars and houses? Genuine questions.
rival38 said:
Exactly, but now with the new possibility of negative interest rate financing. For clarity this is Bank finance not vendor finance, in this case a loan in Euros from a Danish bank to a British citizen for the part finance of an Italian built, Maltese ( vat considerations probably) registered boat.
Compared to the complexity of that, how long before we see negative mortgage rates - in Euros at least becoming available? and if negative rate finance became available on consumer durables / vehicles etc acompanied by outright negative rates on savings ( instead of negative after inflation, as now) would it make people behave differently? What would be the effect on the value of cars and houses? Genuine questions.
There are already negative interest rate mortgages available:Compared to the complexity of that, how long before we see negative mortgage rates - in Euros at least becoming available? and if negative rate finance became available on consumer durables / vehicles etc acompanied by outright negative rates on savings ( instead of negative after inflation, as now) would it make people behave differently? What would be the effect on the value of cars and houses? Genuine questions.
https://www.theguardian.com/money/2019/aug/13/dani...
What would happen?
In the short term (imo):
Houses - massive, massive and rapid house price inflation
Equities / bonds - inflate, as cash moves into higher risk assets to chase return
Inflation - increase
Cash - devalued by higher inflation - so far less incentive for people to save
Consumer spending - rise due to above
Cars - classics/exotics market to rise due to cheaper financing. Normal stuff - car sales jump due to very cheap monthlies (due lower interest rates)
I hope nobody from the government is reading this because the above sounds like a brilliant way of fooling the masses into thinking they are doing great.
Who cares if you can't afford food. As long as you've got a new build box with more bathrooms than bedrooms and the all important rented white German car on the drive.
Who cares if you can't afford food. As long as you've got a new build box with more bathrooms than bedrooms and the all important rented white German car on the drive.
nunpuncher said:
I hope nobody from the government is reading this because the above sounds like a brilliant way of fooling the masses into thinking they are doing great.
Who cares if you can't afford food. As long as you've got a new build box with more bathrooms than bedrooms and the all important rented white German car on the drive.
Bingo. Problem when politics focus on short term papering the cracks rather than the long term. Who cares if you can't afford food. As long as you've got a new build box with more bathrooms than bedrooms and the all important rented white German car on the drive.
IMI A said:
Honestly to predict car prices are going to go up cunning as Baldric. My own view short-medium term pain followed by UK outperforming against fragmenting Europe medium-long term.
I'm not predicting increased car prices per se - I agree with your outlook. However - the question was: "what would happen to car prices IF negative interest rates were introduced" (no one is suggesting they will)
Cheaper borrowing = more demand = higher car prices (in general)
https://www.youtube.com/watch?v=PHe0bXAIuk0
trowelhead said:
IMI A said:
Honestly to predict car prices are going to go up cunning as Baldric. My own view short-medium term pain followed by UK outperforming against fragmenting Europe medium-long term.
I'm not predicting increased car prices per se - I agree with your outlook. However - the question was: "what would happen to car prices IF negative interest rates were introduced" (no one is suggesting they will)
Cheaper borrowing = more demand = higher car prices (in general)
https://www.youtube.com/watch?v=PHe0bXAIuk0
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