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View Full Version : Make love, not war. (auto loan effects)


duke330ci
12-19-2002, 09:09 AM
Hey 'Fest -

Some news reports claim that the US is very close to war with Iraq. Analyzss estimate war as early as late Jan to early Feb.

Here's my question...How will war with Iraq, or any country for that matter, affect auto loan rates? Right now, excellent credit can bag ~4.9% on a new car loan.

Will the rates go up or down? How long will it take to affect the rates?

I need to have a loan secured by Feb 18. If the rates might go up b/c of war, I want to apply as early as I can to lock in a lower rate. If they will go down, I may try to delay as long as possible.

Let me know what you think!

Thanks
david.

beauport
12-19-2002, 10:00 AM
Originally posted by duke330ci
Hey 'Fest -

Some news reports claim that the US is very close to war with Iraq. Analyzss estimate war as early as late Jan to early Feb.

Here's my question...How will war with Iraq, or any country for that matter, affect auto loan rates? Right now, excellent credit can bag ~4.9% on a new car loan.

Will the rates go up or down? How long will it take to affect the rates?

I need to have a loan secured by Feb 18. If the rates might go up b/c of war, I want to apply as early as I can to lock in a lower rate. If they will go down, I may try to delay as long as possible.

Let me know what you think!

Thanks
david.

Anyone reading this post should step back and read it again. Interesting world we're living in. As we unremarkedly view our country about to go to war, the issue that boils to the top is how this war might affect the interest rates for purchasing a car.
Nuff said.

Spiderm0n
12-19-2002, 10:39 AM
Originally posted by beauport
Anyone reading this post should step back and read it again. Interesting world we're living in. As we unremarkedly view our country about to go to war, the issue that boils to the top is how this war might affect the interest rates for purchasing a car.
Nuff said.

I agree... amazing post.

duke330ci
12-19-2002, 10:40 AM
good point.

i'm glad you brought that up. it's easy to loose sight of bigger issues and reduce them to more selfish things like effects on auto loan rates.

i feel pretty badly about not being more sensitive.

however, we, as individuals who go about our daily business, can't help to focus on issues that directly impact our lives and issues that we have a certain degree of control over.

without getting into a discussion about whether or not the US should engage in war with Iraq (this isn't the place for it), i would say that there isn't a whole lot an individual person can do about it. so, it makes sense to accept that war is very likely, however destructive and unfortunate war is even if it is for a justifiable cause, and it is rational to discuss and assess how it may affect our day to day lives - auto loans, new home loans, job security, etc.

like i said...good point.

david.

Michael330
12-19-2002, 12:02 PM
Originally posted by duke330ci
Hey 'Fest -

Some news reports claim that the US is very close to war with Iraq. Analyzss estimate war as early as late Jan to early Feb.

Here's my question...How will war with Iraq, or any country for that matter, affect auto loan rates? Right now, excellent credit can bag ~4.9% on a new car loan.

Will the rates go up or down? How long will it take to affect the rates?

I need to have a loan secured by Feb 18. If the rates might go up b/c of war, I want to apply as early as I can to lock in a lower rate. If they will go down, I may try to delay as long as possible.

Let me know what you think!

Thanks
david.

It is a justified question. I don't see what the big deal is. Anyway, if you recall during the Persian war in 1991 Fed increased interest rates to avoid inflation (wars are generally associated with increased inflation). Today's situation is almost a mirror reflection - theoretically Fed may have to cut rates to avoid deflation. I just don't belive that this will be the case. Fed is aware of Japan-like liquidity trap situation where despite low cost of capital everyone holds on to their money instead of lending and borrowing. There are signs that Feds lowering of rates had some effect already and I don't think they feel the need to bring it down. There is simply not much there to cut anymore and deflation is not a major worry. And I doubt it would affect consumer borrowing terms much. In fact, many think that the rates should go up sometime next year, especially long-term (such as mortgage). In general, if the war was to produce higher oil prices (due to saudi arabia and russia cutting output), this would lead to higher inflation and in turn force Fed to raise interest rates. My belief is that Fed will try to keep the rates at a current level for as long as it can and will raise them sometime mid-late next year. But this is all speculations obviously. Hey, if you're worried you can always lock in these futures contracts now...

Read more here:http://www.cifunds.com/web/pdf/sterling/200111.pdf

ff
12-19-2002, 12:14 PM
Originally posted by beauport
Anyone reading this post should step back and read it again. Interesting world we're living in. As we unremarkedly view our country about to go to war, the issue that boils to the top is how this war might affect the interest rates for purchasing a car.
Nuff said.

Maybe he saved his "bleeding heart hippie" post for the "bleeding heart hippie" message board. This is a BMW message board, no? Man, everyone's so touchy-sensitive...

·clyde·
12-19-2002, 12:20 PM
Originally posted by duke330ci
however, we, as individuals who go about our daily business, can't help to focus on issues that directly impact our lives and issues that we have a certain degree of control over.

It can also be a good/easy way to avoid reality.

without getting into a discussion about whether or not the US should engage in war with Iraq (this isn't the place for it

Ever visited The Off Topic section? If not, Spiderm0n and I would be more than happy to show you the way. :eeps: :banghead: :eeps:

:D

brave1heart
12-19-2002, 12:37 PM
Originally posted by duke330ci
Hey 'Fest -

Some news reports claim that the US is very close to war with Iraq. Analyzss estimate war as early as late Jan to early Feb.

Here's my question...How will war with Iraq, or any country for that matter, affect auto loan rates? Right now, excellent credit can bag ~4.9% on a new car loan.

Will the rates go up or down? How long will it take to affect the rates?

I need to have a loan secured by Feb 18. If the rates might go up b/c of war, I want to apply as early as I can to lock in a lower rate. If they will go down, I may try to delay as long as possible.

Let me know what you think!

Thanks
david.

:tsk: :tsk: :tsk: :tsk: :tsk: :tsk:

duke330ci
12-19-2002, 01:09 PM
just checked out the off-topic board for the first time. not bad. some interesting threads. thx for the suggestion.

ff
12-19-2002, 01:34 PM
Originally posted by duke330ci
just checked out the off-topic board for the first time. not bad. some interesting threads. thx for the suggestion.

Duke330ci, just a head's up: When you're discussing anything at all around here about things that might be offensive to at least .00000001% of the population, be sure to include in your post:

1) Feelings of regret for all the wrongs that your forefathers did to other forefathers througout history. Added bonus points for offering personal cash rewards to anyone that once heard of a forefather that suffered in any way, and caused them to grieve for that forefather for at least 1 moment. Striking of the breast is optional.

2) Words of sorrow for everyone that knew someone that was related to another person that died in a war that happened 1400 years ago

3) Something to the effect that you will pray 100 Hail Mary's each night, to make up for the suffering that goes on in cardboard boxes underneath rickety old bridges all over the U.S.

4) State that you will submit yourself to causes that support people that refuse to help themselves.

5) When talking about a certain NY buildings that were destroyed by terrorists, be sure to let everyone know, over and over and over, how bad you feel for the families involved. I mean, everyone knows how most people feel, but it's important to pay your respects every chance you get, so that nobody forgets how bad you feel.

6) ...and finally, when mentioning anything about war, be sure to include such dead-horse phrases as "war is a terrible thing" and speak of how you completely disapprove, and so on.

Well, you get the picture. It's no longer possible to discuss a "sensitive" topic without following these tips, without all the whiners thinking you're a cold, insensitive, a-hole.

beauport
12-19-2002, 06:52 PM
Originally posted by ff
Maybe he saved his "bleeding heart hippie" post for the "bleeding heart hippie" message board. This is a BMW message board, no? Man, everyone's so touchy-sensitive...

:lmao: :lmao:

Well every day is something new and being labeled a "bleeding heart hippie" brought a smile to my face. Having spent a career as an officer in our armed forces must have twisted my thinking. My original response was not an attempt to negate the poster's concern about the the possibility of rising interest rates. It was what it was, a request plain and simple. If more was read into it that was the readers.

Matthew330Ci
12-19-2002, 08:08 PM
:rolleyes:

why don't you all sell your bmw's and start taking the bus to places if we go to war.

:flipoff:

ff
12-20-2002, 05:52 AM
Originally posted by Matthew330CiM
:rolleyes:

why don't you all sell your bmw's and start taking the bus to places if we go to war.

:flipoff:

Already taking the bus. My commute is just too darn long into St. Paul, and too much traffic, so I started taking the bus. Not the cleanest way to commute, but it saves me from a lot of hassles with bad drivers, parking, etc.

When you consider the $$ you save on parking, gas, mileage, taking the bus is a pretty smart way to go. You come out waaaay ahead.

beauport
12-20-2002, 06:22 AM
Originally posted by Matthew330CiM
:rolleyes:

why don't you all sell your bmw's and start taking the bus to places if we go to war.

:flipoff:

I take the bus/metro as well. Makes driving the car all that much more fun when I do use it.

·clyde·
12-20-2002, 12:11 PM
Originally posted by ff
When you consider the $$ you save on parking, gas, mileage, taking the bus is a pretty smart way to go. You come out waaaay ahead.

Oh yeah? Try taking the subway on the government's nickel. Financial;ly it's great...I hate taking the fuc%ing subway though :(