I have a 5g jug full of Pennies and one 3-4 full of silver change. Eventually I’ll get around to sorting them out for pre 1964 silver coins and at the same time solve the coin shortage.
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it actually costs more to produce the penny than its worth.
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Yeah that was as hot and ignorant as they come.
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What is the best course of action with less chance of taking a bath when things stabilize?
Buy used and overpay 5-10k, Lease and overpay but be free and clear in 3 year… Or pay MSRP and be upside down likely in 3 years…
Looking gloomy for me folks… Ehhh
Ask 10 different people and you’ll get 11 different answers.
If you end up in a negative equity situation, the only solution is to dig a hole big enough to bury the negative equity: either write a check or roll it into something more expensive.
Some people are going to tell you that the new car over MSRP is the better value, but it also requires a bigger hole to bury.
Is it better to pay $20k for a $15k or $45k for a new car that is $40k MSRP? There’s only $5000 difference in both examples, although you’re going to pay more tax and fees on the bigger purchase almost everywhere, but (absent a check for $5k) you’re going to need to dig a bigger hole to bury the equity on the new one then you are on the used one.
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There are definitely used cars that have not inflated nearly as much as 5-10k
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Think we should stop using the word ‘bury’ to describe negative equity. Burying implies that it’s gone, done, dusted. Out of sight, out of mind.
Rolling negative equity is the exact opposite of burying anything: it continues to live on and haunt the poor soul who pays more interest and tax on top.
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Recently sold my ram for 49k my payoff was 41k I believe and they have it listed for 57!
The crazier is I sold Kia back a 6 month old k5 with an MSRP of 29k, and they have it listed at 37!
I just don’t understand any of this anymore 
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Don’t be picky. There are options out there to ride this out. Wrangler 4XE, Frontier on 18mo lease. Alternatively, if you’re going to pay MSRP, buy something that generally isn’t discounted heavily, like a Porsche (probably have to order and wait to avoid ADM). Avoid vehicles that traditionally have heavy incentive. Multiple ways you can play to minimize your loss. Or buy a plug in hybrid like the X5 and collect your $7500.
The bigger problem right now are interest rates. We’re seeing 4-5% on leases that we’re half that a few months ago. Until inflation is under control, I don’t expect the rates to get better. With the current state of the stock market, I’d try to finance as little as possible (if any). Before it was easy to say you could make money by borrowing at 1-2% and just invest, at the current rates and volatile market, it’s much less of a sure thing.
In many major cities you can’t even get approved to rent a 1 bedroom apartment on your own if you’re making $60k a year. Most apartments require 3x income to get approved and finding a 1 bedroom in a large city for under $1,600-1,800 per month is very difficult unless you want to live in a not so nice area. Figure $1,700 per month times 3 is $5,100 times 12 is $61,200 per year income requirement to even qualify for a 1 bedroom apartment.
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Brands that hold value purchased at msrp shouldn’t take too much of a hit in 3 years. Unless there’s a complete market collapse. Buying a 27k camry for 27k vs 23-24k (2020 pricing) doesn’t seem like a terrible option in this market. If you buy something reliable, popular, and that has good mpg I don’t think you will lose much if anything in the next few years. I could see that above example working out to around 300-350/mo actual cost.
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Peak insanity is far from over due to lack of inventory.
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Doesn’t look like it’s ending anytime soon. My sister bought a 2019 MB GLE 450 2 years ago for 45,749 and just sold it to a Kia dealership with 30,000 more miles last week for $45,000.
I have a 2019 Infiniti Q50 Signature Edition 39 month lease ending this December and I’m afraid I may have to buy it out since it may not be worth trying to get in a new lease. I’ve been paying around $299.00/month nothing down on my last 2 Q50’s since 2016.
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I’ve often wondered about the 10k thread. Buying cars that are like 10-15 yrs old with 100k + miles. Not sure that is a win vs buying a civic or comparable new and just financing it even if paying slight premium on msrp.
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Yes but that is offset due to demand-adjustments stemming from higher interest rates and fuel prices - prices are steadily falling.
the guy who runs Zerohedge is a bulgarian securities fraudster who is banned from entering the US
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Insider trading to the tune of $1000? He’s actually a very intelligent man and has a resume that would put most people to shame along with a genius level iq.
I agree he’s sensationalist at times (doom sells) but much of what he prints has manifested in the past few years.
Regardless the article was sourced and the figures are correct.
He also lives in the USA as far as I know. He was never “banned”
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Agreed. At least around here anything $10k currently would be worth no more than $2-3k pre-craziness… and is nearly ready for the scrapyard.
So you can overpay by $7k for some junk or you can overpay by $7k for something newer.
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this is getting off topic, but ZH has a very anti-american bias. I consider him part of the cadre of foreign internet trolls that are trying to chip away at american society.
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Calling a spade a spade isn’t anti American. I’m sure he enjoys the spoils of capitalism like any immigrant and hard working intelligent American. His entire career is a success story. Libertarians are the pinnacle of what it means to be American. Embracing small decentralized govt is how America was founded and constitutionalized.
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