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Cars, like homes, live in a debt market. I can't speak for the US but here in the UK more than 90% of new, private car registrations are supported by purchases
by nly 5y ago
Cars, like homes, live in a debt market. I can't speak for the US but here in the UK more than 90% of new, private car registrations are supported by purchases made on finance[0].
High car and house prices are what you get when you have unprecedented close-to-zero interest rates for this long.
Prices = f(interest rates, affordability)
[0] https://www.fla.org.uk/media/facts-and-figures/ https://www.fla.org.uk/media/facts-and-figures/
- namdnay 5y ago> I can't speak for the US but here in the UK more than 90% of new, private car registrations are supported by purchases made on finance I would be wary of this statistic, because it could just mean that only people with leasing plans are buying new cars, and everyone else is buying the cars coming out of lease (which makes sense financially, a car loses something like 30% of its value in the first two years?)