Resale Value

Agree on first part, anything with a motor aside from rare cars will depreciate and are not investments. But financing at 2-3% right now is better than paying upfront. 12 month CDs are paying over 4.5%. 99 out 100 times you are correct about financing, just this time is different.

 

That's fair. And even the depreciation is not truly "fact" I suppose, I sold a 2006 4Runner a year ago for 3000 more than I paid. But in general terms, financing a depreciating asset does not make a lot of sense, so I just write the check and be done with it. If you can't, buy something cheaper.

EDIT: I should add that I am a little salty about everyone always bitching about how expensive vehicles are, then look at the $1000 a month, 72 month terms people sign up for. Of course manufactures are going to keep raising prices if you pay them.

 

Yup. And its not just vehicles that people sold over what they paid for, boats, RVs, and non-luxury items too have seen a return of purchase price because the current cost to buy new has jumped up faster than the depreciation of used. Wild times. But I got a feeling things are gonna get ugly for most us working folk in the next 18 months.

 

People are going to continue to do what they have always done.
They will continue to do it if allowed.
At this point in time I would be more concerned with the banks - lenders that gave them the money in the first place.
Just as people are dealing with higher rates, all these companies with bank debt - most - needed to grow - will be paying more interest on loans in the future.

 

Unfortunately, I agree. Hopefully some folks were the ant and not the grasshopper.

I bought a new boat in early '21. Could sell it today, even with 200 hours on it, for $15k more than I paid. But probably will be worth half that in 18 months when the market is flooded with upside down sellers.

 

I assume you saw the news on SVB yesterday?

 

If I hadn't gotten mine at with no markup, 2.9% interest and the fantastic trade in value on my 2014, I definitely would not have bought mine. I've had no real issues with mine and 100% do not regret purchasing it......yet.

 

Sure seems like we've witnessed this before with the 2007 financial crash from subprime loans and overextending............maybe that was just a dream though.

 

spoken like a true ford owner , Ha!

I like the higher resale of Toyotas, when I want another one I get a good amount back

 

I mean, that's fair. I'm in a unique situation, the difference in resale value between a Tundra and a F-150 wouldn't even register to me. But my point is valid.

 

That's why I care about the resale of Toyotas. This is my fourth Tundra since 2008 all bought new. I have never been upside down and always drive away from the dealer happy. Could that be said with Ford, Chevy, Dodge...idk.

 

I know , I know , if I had your money, I’d throw my money away , lol.

 

I don't think I've heard that one before.

 

@Bannerman got them fun coupons

 

I have a buddy that used to always say “if I had your money I would burn mine”

 

I love old sayings like that. I had a meeting with an older client yesterday who said, "if you gotta eat shit, don't nibble".

 

I used it almost every day. I also bought it to use it, just like my truck. I see it as a depreciating asset, not in investment.

 

Because tomorrow is never guaranteed!

 

See the thing is in Canada our housing was not affected in 2007.
Our banks are strong worldwide. Our banks buy US banks.
When you watch Boston games TD stands for Toronto Dominion. just saying.
So our housing has been called the largest bubble in the world.
Toronto and Vancouver avg price is 1.1 million and up.
Our Fed equivalent stopped the rate hikes for fear hitting to hard at this.
But if the US Fed keeps raising the Bank of Canada will need to follow to keep the dollar from going even lower.

 

That's a good point if money was what you wanted. Sell it now for $15K profit and buy cheaper in 18 months. But on the other hand, having the ability to escape most of the population, maybe even the wife from time to time, crack a frosty beverage and throw some lines in the water might mean more to me than $15K.

 

You got that right buddy. I lost all my hair for a few months when I was 27, once you go through that you realize every day counts.

 

Plus technically it's the boat my wife wanted, so she wouldn't let me sell it anyway.

 

Married to the same person I think. Wife said if I sell the boat, I better not come back. 3-4 foot-itis has me watching the prices drop tho

 

The other issue for Canada aside from the domestic financial issues is the primary countries Canada trades with are mostly all at the brink of or already in a recession. If that doesn't change and gets worse, trade and commodities for Canada are going to exacerbate it.

 

We will keep the new tritoon for the next ten years at least I'd guess. But yeah I've got my eye on the market too. I have a GradyWhite 180 right now for my fishing boat, but if the market ever really starts to suffer that's going to turn into a 22 or 23 footer.

 

But a few websites just assured us this isn't 'contagious' and you KNOW you can trust everything the internet says.

 

"Don't worry, nothing to see here" quickly turns into "we're from the government, we're here to help."

 

First time in the Tundra though....so...

 

And THAT is a scary statement.

 

Too bad there isn't details on how to maintain this kind of engine though.