BOE signals interest rises...car bubble to burst??
Discussion
Drclarke said:
YAWN! Yet another discussion on b***dy values!!!!!! There is more talk of 'Bubbles' on here than the official Michael Jackson's Monkey website.
Doesn't anyone buy the cars to enjoy anymore????
No we do, but some of us don't have access to daddies money or have millions of spare £ floating around. So a brutal hit on depreciation on the current car might impact what I can afford to drive next. Doesn't anyone buy the cars to enjoy anymore????
Edited by Drclarke on Thursday 14th September 16:27
Its a valid topic I think... if you don't care about it then its easy to ignore
Carney has gotta be one of the worst BoE governors of modern times. He has a very bad track record of getting predictions wrong, like Brexit.
He's obviously trying to talk down inflation. But real-world inflation is already running at 3-5% and has been for months. Prices in supermarkets have been rocketing all year. Better late than never...
The swaps market this evening is pricing in a 50% chance of a 0.25% rate rise by Nov, and 95% chance by Feb... So, it does look highly likely a small rise is coming.
Unlikely to massively affect people with loans (most are now fixed-rates), but it will have a psychological affect of slightly dampening demand for everything. Not entirely unexpected, as people are sitting on their hands ahead of Brexit, anyway.
He's obviously trying to talk down inflation. But real-world inflation is already running at 3-5% and has been for months. Prices in supermarkets have been rocketing all year. Better late than never...
The swaps market this evening is pricing in a 50% chance of a 0.25% rate rise by Nov, and 95% chance by Feb... So, it does look highly likely a small rise is coming.
Unlikely to massively affect people with loans (most are now fixed-rates), but it will have a psychological affect of slightly dampening demand for everything. Not entirely unexpected, as people are sitting on their hands ahead of Brexit, anyway.
Yes, and no.
Yes, where someone has purchased a good but not exceptional car, using borrowed money, for the purposes of selling at some point in the future at a profit. This has ''ooops'' written all over it.
No, where someone purchased an exceptional car and even if finance was involved, has sensibly paid down the all or most of the debt. An exceptional car will always find eager buyers, and if debt to value is low, the owner can play the long game if a market tanks, and enjoy driving the lovely car too!
As for the BoE rate rise, I would spend much more time focused on what's coming down the line. A necessary, inevitable and exceptionally brutal hard Brexit.
Yes, where someone has purchased a good but not exceptional car, using borrowed money, for the purposes of selling at some point in the future at a profit. This has ''ooops'' written all over it.
No, where someone purchased an exceptional car and even if finance was involved, has sensibly paid down the all or most of the debt. An exceptional car will always find eager buyers, and if debt to value is low, the owner can play the long game if a market tanks, and enjoy driving the lovely car too!
As for the BoE rate rise, I would spend much more time focused on what's coming down the line. A necessary, inevitable and exceptionally brutal hard Brexit.
TP321 said:
BOE has signalled that interest rates will rise in the next few months. It may be a difficult winter for those trying to sell "bubble" priced cars..I wonder if we will start seeing some serious price reductions over the coming months, over and above the usual winter softening.
A 0.25% increase only takes us back to the previous rate.Futher 0.25% increases will nibble at, but not immediately impact the pocket.
I think events in 2019 may have more bearing. aka Brexit & Co
RamboLambo said:
At 15% the whole country would be Donald Ducked with the amount of borrowing we have.
Talk about a generation living beyond their means. Kids with big mortgages and flash cars on PCP would not stand a chance.
And therein lays a fundamental flaw. Wouldn't be a bad idea to flush away some of the easy lending. UK adopted a flawed US system.Talk about a generation living beyond their means. Kids with big mortgages and flash cars on PCP would not stand a chance.
Nobody is automatically entitled to anything. Tough love and all that
sparta6 said:
RamboLambo said:
At 15% the whole country would be Donald Ducked with the amount of borrowing we have.
Talk about a generation living beyond their means. Kids with big mortgages and flash cars on PCP would not stand a chance.
And therein lays a fundamental flaw. Wouldn't be a bad idea to flush away some of the easy lending. UK adopted a flawed US system.Talk about a generation living beyond their means. Kids with big mortgages and flash cars on PCP would not stand a chance.
Nobody is automatically entitled to anything. Tough love and all that
garystoybox said:
100% agree. The use of the word 'entitled' is accurate. Everybody thinks they have the right to this, that and the other, regardless of age, experience, earnings, etc. Not living in the real world! E.g. My cleaner, probably on minimum wage, turned up last week in a new BMW 140M!
It's all on Contract Hire. But inevitable as cars become more complicated and computer driven, and cannot be fixed outside the main dealer network, people will simply rent brand new ones with 3 year warranties.garystoybox said:
100% agree. The use of the word 'entitled' is accurate. Everybody thinks they have the right to this, that and the other, regardless of age, experience, earnings, etc. Not living in the real world! E.g. My cleaner, probably on minimum wage, turned up last week in a new BMW 140M!
Perhaps you should consider paying your cleaner more than minimum wage, then she could afford a higher standard of living without getting into debtChrism355 said:
garystoybox said:
100% agree. The use of the word 'entitled' is accurate. Everybody thinks they have the right to this, that and the other, regardless of age, experience, earnings, etc. Not living in the real world! E.g. My cleaner, probably on minimum wage, turned up last week in a new BMW 140M!
Perhaps you should consider paying your cleaner more than minimum wage, then she could afford a higher standard of living without getting into debtGassing Station | Supercar General | Top of Page | What's New | My Stuff