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Careless-Pin-2852 t1_iugpqew wrote

You are correct and wrong at the same time. Interest rates need to ruse until inflation is at 2% or maybe 4%. There is a debate about 2% vs 4%.

But currently cars are still too expensive. And that was the biggest part of inflation. I work a second job at carmax and i can tell you most cars are financed so high interest will eventually bring car prices down.

I have not seen much of a drop in car prices yet so interest rates need to go up more. Maybe not to 9% but more. I have seen a slight slow down but not much.

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AutistGobbChopp t1_iugyyva wrote

>You are correct and wrong at the same time.

Can't wait to hear more about this

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Letters-to-self t1_iugzn6u wrote

Schrödingers Cat. We are all correct and wrong at the same time. img

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JP2205 t1_iuh911c wrote

People still buying overpriced cars with 6% loans?

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Careless-Pin-2852 t1_iuhnrod wrote

Yes. It feels like volume is down but people are still taking g Big loans for 4 year ild cars.

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JP2205 t1_iuhnyno wrote

Thats crazy. Im seeing pickup trucks for 50k and with 80000 miles on them. At 6% wondering who the hell wants a $900 car payment plus extra insurance. Doesnt seem like this is gonna end well.

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Careless-Pin-2852 t1_iui4f37 wrote

It needs to end with people taking the bus. That is not inflationary plenty of space on the bus.

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blatchcorn t1_iuh5wpu wrote

Who is seriously up voting this comment?

The OP is not correct and wrong at the same time. He is just correct.

We have higher levels of debt which increases the pain felt by interest rate increases.

Another factor is that some of this inflation is cost-push which should resolve itself eventually irrespective of interest rates, which only deal with demand pull inflation

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Careless-Pin-2852 t1_iuho1hp wrote

I have not seen used car prices fall yet and until That happens we need to keep upping interest rates

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blatchcorn t1_iuhqbip wrote

Ok let's hope the FED gives you a phone call so you can tell them when car prices fall and that's their signal to stop raising rates

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Careless-Pin-2852 t1_iui48oj wrote

Actually, the fed has an army of people to call places and asks them questions about prices. The odds of some low level fed person calling my store are low.

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