Americans Are Going in Reverse on Their Car Loans
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So, yep, they’re calling them bad loans right now. Bad loans hit record high as used car prices suffer worst bear market ever. Bear market for used cars? It’s a car, OK? It’s a car. It’s not an investment. You do understand that, right?
You do understand that it’s not investment, but the only time, okay, the only time I’ve seen cars go up in value, regular cars, okay, I might not even the regular car, even some, you know, like even mid -size to moderate luxury cars is when we had the COVID situation and there was supply chain issues and people couldn’t get their hands on cars. That’s the only time, only time.
The only other cars that will go up in value for you is you decide to go out and get yourself a Ferrari and then park it in your garage and just, you know, not drive it. Not drive it and just, you know, clean it all the time. Remember that bit from Ferris Bueller’s Day Off about the Ferrari there and they took it out for a spin. He doesn’t drive it. He doesn’t drive it. He just cleans it with the diaper. Ferrari, if I had a Ferrari, I’d…
There’s no way I’m not driving that thing for crying out loud. Who cares? Okay. What’s the point of just looking at the darn thing? You got yourself a fried driver. Anyway, I’m getting off the beaten path. There is the cost of driving a vehicle right now is astronomical. Talk about the cost to repair a vehicle. Talk about insurance costs, a myriad of different things. Do not ever, ever, ever, ever, ever, ever.
Look at your car and purchase a car and say, you know, think about what, what the car is going to be worth three years down the road, four years down the road. Your car is a bill. Okay. It is a tool to get you from point A to point B to get you from your home to your job, from your home to your grocery store. That’s what it’s there for. To take the kids on a trip to the lacrosse tournament. Do you think the
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Plumber would look at his tools and say, I’m going to get these tools because of what their resale value is going to be a few years down the road. No, no. So if you’re looking at an automobile, you want to take a look at the cost of ownership. You want to take a look and say, hey, how much is it going to cost to fix this thing? What type of incentives are they going to give? If I get this car.
Are they going to, you know, do the oil changes for free and a myriad of other things that go along with it. Cost of ownership is all you should concern yourself with. Bear markets and use cars. If you’re tinkering around, okay, trying to figure out what you’re going to get on a resale on your car three years from now, I’m just telling you much, much better things that you can do with your time. Watchdog on wallstreet .com.
