Good news for the used car market. Lots of new inventory about to become available.
Bad news for American car manufacturers, who are already struggling while they’re in limbo between ICE and EV and can’t commit to either, but certainly will help to correct used car prices.
Don’t expect this to be a major economic factor to track going forward - many of these borrowers were likely already pushing their budget to afford the vehicle. If they financed with a variable rate while interest rates were rock bottom and government subsidies were peaking then this is exactly what you’d expect from the Fed rasing the interest rate.
Sure, some of these are due to unemployment and other circumstances but the major factor that changed was the prime interest rate, which can directly impact loan payments at a scale that is more directly measurable than something like unemployment, which is indirectly caused by the interest rate hike.
Good news for the used car market. Lots of new inventory about to become available.
Bad news for American car manufacturers, who are already struggling while they’re in limbo between ICE and EV and can’t commit to either, but certainly will help to correct used car prices.
Don’t expect this to be a major economic factor to track going forward - many of these borrowers were likely already pushing their budget to afford the vehicle. If they financed with a variable rate while interest rates were rock bottom and government subsidies were peaking then this is exactly what you’d expect from the Fed rasing the interest rate.
Sure, some of these are due to unemployment and other circumstances but the major factor that changed was the prime interest rate, which can directly impact loan payments at a scale that is more directly measurable than something like unemployment, which is indirectly caused by the interest rate hike.