Just read USA Today’s article on how finding low lease deals may be a thing of the past:
Cue everyone ripping up on BMW for their 4% rate overlooking the fact GMC has some cars in the 5s at this point.
It is just a cycle. If rate goes up, a lot of people will not buy new cars and instead buy used cars. The used car market will dry up, inflation will be down because everyone is keeping their money in the bank, feds will lower rate and car manuf will increase residual value and decrease ratr and everyone is happy again leasing new cars.
Some of the lease rates for new models, not cheap autos, are pretty high as mentioned in multiple threads on LH. Not the best examples in the article but some data from Wantalease pulled from yours truly! - Jack
As someone who is a heavy currency and market trader and an avid watcher of the fed this statement makes me cringe. Were still very much behind the curve in terms of interest hikes FYI
Federal reserve can give 2 shits about the used car market
This just in: Automakers no longer trying to be competitive, slash sales numbers with no financial repercussions
Our topic here is cheap lease deal ending. We are not talking about why feds raise rates or lower it. But since you brought up the subject, let me educate you. Largest percentage of gdp is personal consumption and a big part of it is in the auto industry. So feds give a shit if people buy cars or not.
Here is an exerpt:
The United States automotive industry is a critical component of economic growth with extensive interconnections across the industrial and cultural fabric of the U.S.
The auto industry is one of the most important industries in the United States. It historically has contributed 3 – 3.5 percent to the overall Gross Domestic Product (GDP)
What do you drive?
It’s been trending that way for sure. 2 more years of #MAGA and #winning and #tax cuts #deficits -> we will see 10% Auto rates…