Older millennials, adults aged 35 to 44, had debt-to-disposable income ratios around 250 per cent in 2019, while Freestone noted that metric was roughly 150 per cent for the same age group in 1999.
Can confirm we’re sitting around 250% but this is after exercising significant restraint to not take on as much mortgage as the banks would have given us. Everyone I know who bought over the last couple of years went all out and I can’t imagine them being any lower than 300-350%.
Bidding up used cars during covid was peak bubble behavior
Work trucks costing what a start home used to cost a decade ago
I guess with at truck you work AND live in it
Bubble or generational shortage? You couldn’t replace a truck with a new, so prices ballooned.
The 6-10 year car loan with negative equity will cause a lot of pain in the next few years.
I think new car prices will drop. The payments aren’t affordable at current rates and used cars exist. When things were 0% APR you can get a 7 year car loan on an $80k car. At 6% who’s buying these things?
I know I’m going to nurse my 12 year old car because the current car market seems hell bent on making buyers miserable.
Well generational shortages caused by under construction and foreign money resulted in the bubble…
Either way, nobody was forcing people to play stupid games because “this is the new normal”
They can goose the system whatever way they want, but only low interest rate can sustain these prices. It does not look like they can lower the benchmark rates so people swimming naked will be exposed.