Are there any Economic AI models that can predict interest rates in 2026?

Off-Ramp
,
1

I am currently leasing a 2024 Hyundai Ioniq 5. I am happy with the car and plan to drive it until lease maturity.

Here’s my dilemma. I have a reservation for a Rivian R2 and Scout SUV. I might finance either SUV, if the numbers align.

I am also a sedan kind of guy. I wouldn’t mind leasing a luxury German - I had a 2018 A4 and 2021 A6 (6 cylinder). However, I don’t want another Audi. The new 5 Series does not appeal to me, and the new E class is pricey.

So I have been looking into purchasing a CPO BMW or Mercedes. Any idea what interest rates might look like in a year?

Or better question - what market conditions would be needed for interest rates to be low in 1 year?

EDIT: I am not looking for car recommendations. My budget for a used car is $45k + taxes.

2

And how does the interest rate play in this scenario?

3

Sorry. Just added more details.

EDIT: I don’t want to keep leasing, since it can get pricey in MA. We pay yearly excise tax. It was over $800 on my Ioniq5 last year.

4

How is your parking situation? Can you keep an EV as a daily and buy a more special sedan e.g. E34 M5 instead of a blah Benz or Audi? You won’t need to worry about finance rates.

5

I have a 2-car garage and a driveway that can fit up to 4 cars. My wife drives a paid off Pacifica. Insurance rates in MA keep rising. Ideally, I would like to only have one car, preferably a sporty sedan hybrid that is good on gas mileage (25+ mpg). If I can find such a car and within budget, I would probably jump on it.

If I went used, I wouldn’t go for a car that is more than 3 years old. I want to have some of the original warranty.

I won’t be paying cash.

6

I think Mr Rabbi leased an E53 for $1,000 recently. Probably the best price per value you can find is that.

2 Likes
7

Even the gods themselves can not predict the market’s prices and you expect mere creations by mortals to do so?

But seriously, no one, no AI, nothing can give you an accurate prediction. You’re basically asking what the people of the world will buy and sell in the next year lol.

4 Likes
8

Yes. I forgot to mention that I have a Level 2 charger in my garage.

1 Like
9

Not quite. See below.

:backhand_index_pointing_up::backhand_index_pointing_up:

10

I don’t have deep pockets. :joy::grin:

$700/month would probably be my max lease budget. I don’t need an E53. An E450 sedan would do.

11

The MA excise tax on a 2025 $106k E53 AMG would be about $2300 for the first year, based on a 90% value.

Screenshot_20250526-223152
Screenshot_20250526-2231521152×2496 313 KB

12

Oh. My bad, I didn’t read that far lol.

So, there’s a couple of ways.

  1. Inflation continues to go down. We’re seeing that in housing and wages are staying flat now.
  2. A recession especially in the jobs market
  3. J Pow gets replaced with a low interest rate guy.
1 Like
13

I’ve been watching the used car market for the past year. Prices seem stable at the moment. However, I am hoping to see prices come down in the next 6+ months.

I am no economist, but at that point, interest rates could also drop.

Who knows.

1 Like
14

I hate to say it but nothing makes sense bro. People haven’t be rational since 2019 lol. And that’s the thing. Prices did a mini jump when tariffs were announced.

15

That’s brutal. Good luck to you :slight_smile:

16

Our sales tax is 6.25%.

17

It’s really unlikely “rates” in general will be low in one year.

What you’re looking for is a promotional APR for a CPO program that you like.

1 Like
18

Not sure what exactly you saw while watching

Screenshot
Screenshot1021×420 107 KB

https://www.wsj.com/business/autos/tariffsadd-fuel-to-hotused-carsales-98e5bc49

2 Likes
19

Would you consider an 2021 -2023 LCI M550 ?

20

It’s fairly straight forward for any of the AI models to identify market conditions.