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- 🏎💨 Burn Rubber, Not Cash: Is Now the Time to Buy Cars?
🏎💨 Burn Rubber, Not Cash: Is Now the Time to Buy Cars?
What is happening to car values?
Are car values crashing? Is now the best time to buy?
Interest rates, the economy and a gloomy world outlook have slapped the pandemic hockey stick graph straight in the face. You no longer have to bribe the salesman with a Rolex nor send his kids to college for the privilege of paying thousands over MSRP for that car you've been eyeing 👀.
According to Cox Automotive, the average auto loan for used cars is 14.4% and 9.55% for new cars in December. This is definitely putting a strain on households trying to balance their budget while the price of everyday living also increases. This has helped supply recover to pre-pandemic levels and you are starting to see more inventory on dealer lots.
So is this the best time to buy? Well it depends. If you have been waiting for prices to level off then yes now is the perfect time since dealers have more inventory and are more willing to offer incentives. The only thing working against you right now is the higher interest rates. If you have been stashing cash waiting for this moment, good for you, go buy.
A good friend of mine Ryan E. putting some serious miles on his new GT4RS. Driven, not polished!
Unfortunately for the rest of us mortals, the interest rates are keeping our buying temptations at bay. High net-worth individuals are facing a different dilemma. Porsche is on the brink of turning into Ferarri when it comes to their GT products. You must be on their VIP list to be lucky enough to get an allocation for anything with "GT" on it. The new GT3RS is flirting around $500,000 right now, which is well north of a moderately optioned MSRP of $260,000 (non-weissach package). This creates a battle between those who actually want to drive these impressive machines vs. those who want to make a quick profit.
We have seen those listings on social media with delusional owners trying to stop the bleeding on their purchase. Maybe they had an allocation for a rare model and tried to enjoy it before attempting to flip it. Unfortunately for them, their timing is off.
So yes, now is a good time to buy if you have lots of cash sitting around or can find a way to offset the interest rates. Make a strong offer and keep your poker face on.
A look at popular performance car values since January 2021.
Some brand values are dropping faster than others and keep in mind that these are averages. Some rare trim levels hold their value better than others.
BMW G80 M3
Porsche 911
Ford Mustang
Corvette
Audi R8
Tire Chirps
Good reads and entertaining videos.
Need a side hustle? Check out how someone is making $4,000/mo renting out their car.
Throttle House gets to play around with the new Porsche 911 GT3RS
Is everything on YouTube nowadays about straight line speed? Watch how Car & Driver is fueling the pamphlet straight line speed lovers.
Slippery Memes
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