Maybe some will drop out

[Saw4Fire]

From the CFO of Ford. In my experience it does not just revert to the mean, rather it overshoots.


https://jalopnik.com/more-and-more-people-are-falling-behind-on-their-car-lo-1849070028

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[ColeTrain84]

From the CFO of Ford. In my experience it does not just revert to the mean, rather it overshoots.


https://jalopnik.com/more-and-more-people-are-falling-behind-on-their-car-lo-1849070028

The car bubble is gonna pop.

 

[Fmuguira]

ColeTrain84, I agree. Prices on everything ( not just autos) are extreme. Then you factor in the increased cost of borrowing and some people are just gonna have to say “enough”.

Food, shelter and fuel are going to have to take precedence, not for the extremely wealthy but for many of us “others”.

I say hang on; the rides gonna roughen up !!

 

[ColeTrain84]

ColeTrain84, I agree. Prices on everything ( not just autos) are extreme. Then you factor in the increased cost of borrowing and some people are just gonna have to say “enough”.

Food, shelter and fuel are going to have to take precedence, not for the extremely wealthy but for many of us “others”.

I say hang on; the rides gonna roughen up !!

Yep. A lot of things are overinflated. Its gonna get rough. People spent all these stimulus checks on stuff like cars, trucks, boats, ATV's, Campers, etc. I've been seeing a LOT of them now for sale in the last 2-3 months. Stuff that's less than a year or 2 old. People saying they are "downsizing". Rich are rarely effected by these bubbles in the grand scheme of things. Once the jobs start drying up a lot of people will be in for a rude awakening. I'm so glad i put down $37k on my Bronco. I could have put a little more down from what i had saved for it but i decided i got a low enough rate to be fine with it. I'll pay it off early anyway. I'd rather have some extra cash in savings even if inflation is eating away at it.

 

[CowboyKid]

The car bubble is gonna pop.

Fewer buyers may increase the ratio of chipped modules to buyers and so speed produciton, was my initial thought. Then I remembered that even if customers with orders decide they can't afford the loan, someone out there is still likely to pay over MSRP for a canceled order. So long as that is true, canceling an order ahead of mine makes little to no financial sense for whoever is standing in front of me. So maybe no effect on those of us still waiting.

 

[Kramku1]

Yep. A lot of things are overinflated. Its gonna get rough. People spent all these stimulus checks on stuff like cars, trucks, boats, ATV's, Campers, etc. I've been seeing a LOT of them now for sale in the last 2-3 months. Stuff that's less than a year or 2 old. People saying they are "downsizing". Rich are rarely effected by these bubbles in the grand scheme of things. Once the jobs start drying up a lot of people will be in for a rude awakening. I'm so glad i put down $37k on my Bronco. I could have put a little more down from what i had saved for it but i decided i got a low enough rate to be fine with it. I'll pay it off early anyway. I'd rather have some extra cash in savings even if inflation is eating away at it.

Same here including trade in put in 36k left with 6k at 3% I also will pay up early.

 

[Bronco-ocnorB]

The car bubble is gonna pop.

It has to at some point!

 

[Jdc]

There is going to be a lot of people who probably stretched their wallet a little too much to get a Bronco. They could afford it when interest rates were low and gas was cheap, but now that they’re on the rise is going to be out of reach. And since the Bronco for many people is a “want to have” and not a “need to have”… it may help with the supply shortages.

But I suspect the thing that may break the camels back for a lot of people has nothing to do with the Bronco… it is probably going to be housing costs.

I think there are going to be plenty of people who will realize a nice cuv is what they really want and that the Bronco is cool but not worth the loss of comfort

 

[Saw4Fire]

But I suspect the thing that may break the camels back for a lot of people has nothing to do with the Bronco… it is probably going to be housing costs.

I think housing is a bigger bubble than cars. That's where the real problems will be.

 

[mpeugeot]

The reason I ordered my OBX when I did was because I realized that if I was going to get something new, I better do it before things started to go stupid (usually I am wrong about these things), but this time I feel that I wasn't wrong.

With the anticipated interest and price increases on the cost of purchasing vehicles, it appears that I closed the deal at the right time (last July) and even made payments for the Bronco before receiving it (just to keep the interest locked in).

I didn't over extend myself, but I would probably have preferred to wait on getting a new vehicle. "No Regerts" as they say.

 

[F OR D]

I think housing is a bigger bubble than cars. That's where the real problems will be.

all the bubbles. crypto, housing, vehicle, etc.

inflation is up.

2021	7.0%	0.25%	Expansion (5.9%)	COVID-19
2022	4.3% (est.)	1.9% (est.)	Expansion (2.8%)	March 2022 projection
2023	2.7% (est.)	2.8% (est.)	Expansion (2.2%)	March 2022 projection
2024	2.3% (est.)	2.8% (est.)	Expansion (2.0%)	March 2022 projection

rates are up 1.75 this year.

food, materials, gas, etc. are up. no covid assistance. jobs aren't keeping pace with inflation.

things are going to start leveling out, and the high adm broncos are starting to sit.

 

[HeHateMe]

Well, because things may explode soon... Cars, houses, everything... I am considering waiting and passing on my 2 orders (January 22 and February 22) because of interest rates and gas.

Rather try once shit hits the fan so I can score a good deal. On this vehicle and a property. I really "want" a Bronco, don't need it at all, so not going to spend stupid money for it.

What helps is Ford's cluster fuck of a launch...

Turns out they did me a favor.

 

[BroncoAZ]

I recently sold my home in AZ for double what I paid in 2017, but I haven’t paid off my Bronco yet because it’s on a 1.99% loan for 60 months. I’m shopping for a home but don’t need anything right away as I have a place to live, so I’m waiting for the prices to drop. I have a vin for a Lightning Pro as my new work truck, I’m planning to just write a check for that since rates have gone up. Navy Federal is still showing 2.49% for 60 months.

I’m keeping my eyes on the used boat market. I’m thinking there may be some deals this fall when people don’t want to pay the marina to winterize them after not using them much this summer with the high gas prices.

 

[AZ_Liberty]

For me, the big draw of "order it how you want it" is that I could spec out the most basic stripped down truck I possibly could.

Sure, I took the Aux switches at $195, and added $295 for Rapid (now HP) red, but I still barely broke $30k.

I get a feeling a lot of folks took the opertunity to tart them up with expensive gee-gaws that add a lot of cost but don't make it drive better.

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