New Car Prices going up in 2009, buy '08 now!

[civicracer32]

I'm almost afraid to see what the new cars are going to be priced at from Gemany/Japan in '09. Just look at the value of the dollar vs. the Yen in this 6 month chart.

U.S. Dollar to Japanese Yen Exchange Rate - Yahoo! Finance

[IMG][/IMG]

And the Dollar vs. Euro in this one

U.S. Dollar to Euro Exchange Rate - Yahoo! Finance

[IMG][/IMG]

We're talking drops of 15% approx in the last 6 months or so. Sure, the germ/Jap automakers can absorb a couple of percent, but they can't eat this much! Of course they also have to contend with the fact that America is in a recession and that they are more strapped for cash/credit. That said, I wouldn't be surprised if new car prices rose around 10%.

So, those of you waiting for a couple new colors as rumored (charcoal and a new white) and some new head/taillights, may want to just act now as they begin to clear out the '08 models. Not sure those tailights/new colors will be worth anothe $2k.

I hope I'm wrong, but this is what happens when the Federal Reserve cuts interest rates to help homeowners who got themselves into their own mess with adjustable rates/100% or more loans and record high housing prices.

Lower interest rates mean less return on investments related to bonds, banking, treasuries, CD's, etc. Lower rates of return spell less foreign investment in the U.S. currency by foreign nations. Less demand therefore lowers the value of the currency as well as the Fed printing money like mad. Beginning last year in springtime, for the first time ever, and from now on, the amount of money being minted by the U.S. government will not be disclosed to the public. Scary. As the Federal Reserve floods banking/lending institutions with freshly printed money, they erode the value of the dollars in your bank acct/wallet overnite.

One last chart for you. This is the Dollar index. The dollar indexed along with other major world currencies. Down nearly 30% in the last 2 years! Look at this, and then buy your next car before you can't afford a new civic anymore!

INO - US DOLLAR INDEX (NYBOTX) Price Chart and Quote

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Check Honda.com or Edmunds.com or your favorite website for offers and strike when the time is right. I did that this February and bought an '08 Si at 2.9% for 60mo. on a rare promotion through Honda Finance.

["Ridge"Racer]

you leftist bastard. thanks for the cold hard facts.

[civicracer32]

Originally Posted by "Ridge"Racer

you leftist bastard. thanks for the cold hard facts.

Leftist? I'd like to consider myself on the right, and in the right on this subject. I added the actual charts for those of you too lazy to click on the hypertexts.

[GoHuskies]

Your a leftist because your hinting at taking an action now in prevention of future price increases.

If you were really a good patriotic conservative you'd be saying just let things be, the market will tilt itself out in time.

[civicracer32]

Originally Posted by GoHuskies

Your a leftist because your hinting at taking an action now in prevention of future price increases.

If you were really a good patriotic conservative you'd be saying just let things be, the market will tilt itself out in time.

That's what I am saying. All this Federal Reserve meddling (BTW, the Federal Reserve is an Illegal Institution) artificially propping up home prices, and printing money out of thin air, is just setting us up for a bigger burst when the bobble pops.

I'm not asking the Govt. to bail me out after losing $40k this year in the stock market. I just don't know why we are being so sympathetic to real estate speculators who financed a home on an "adjustable rate." I mean, what did they not understand about the term "adjustable." Politicians are trying to buy votes and pushing for a bailout. This bailout is direstly tied among other things to inflation and namely, higher prices on your next Honda civic next year!

Also, a conservative wants to limit/reduce the role of the Federal Govt. (reduce taxes)
(This is exactly why I want the Govt. to stay out of this mess, and let it be).

A liberal wants to increase the role/power of the Federal Govt. (Increase taxes)

["Ridge"Racer]

Originally Posted by GoHuskies

Your a leftist because your hinting at taking an action now in prevention of future price increases.

If you were really a good patriotic conservative you'd be saying just let things be, the market will tilt itself out in time.

But anyways, i was joking, good stuff, i like information like that!

[civicracer32]

Good thing it was a joke, I was prepaing a book in my mind =)

Really sad where this country is financially. I could write a book. Although, I highly doubt anyone would buy one from someone with an adult school H.S. diploma.

[VTECnical]

Leaning Right FTW

[meCka]

haha ftw lol.

ridgeracer ur inbox is full im trying to pm you back.

["Ridge"Racer]

Originally Posted by civicracer32

That's what I am saying. All this Federal Reserve meddling (BTW, the Federal Reserve is an Illegal Institution) artificially propping up home prices, and printing money out of thin air, is just setting us up for a bigger burst when the bobble pops.

I'm not asking the Govt. to bail me out after losing $40k this year in the stock market. I just don't know why we are being so sympathetic to real estate speculators who financed a home on an "adjustable rate." I mean, what did they not understand about the term "adjustable." Politicians are trying to buy votes and pushing for a bailout. This bailout is direstly tied among other things to inflation and namely, higher prices on your next Honda civic next year!

Also, a conservative wants to limit the role of the Federal Govt.
(This is exactly why I want the Govt. to stay out of this mess, and let it be).

A liberal wants to increase the role/power of the Federal Govt.

maybe im in the wrong, and i definately dont want to get into politics, but isnt the liberal in favor of limiting the government? and wouldnt the stereotypical conservative not really care that much about the information you posted, again, correct me if im wrong.

["Ridge"Racer]

con·ser·va·tive Pronunciation (kn-sûrv-tv)
adj.
1. Favoring traditional views and values; tending to oppose change.
2. Traditional or restrained in style: a conservative dark suit.
3. Moderate; cautious: a conservative estimate.
4.
a. Of or relating to the political philosophy of conservatism.
b. Belonging to a conservative party, group, or movement.
5. Conservative Of or belonging to the Conservative Party in the United Kingdom or the Progressive Conservative Party in Canada.
6. Conservative Of or adhering to Conservative Judaism.
7. Tending to conserve; preservative: the conservative use of natural resources.
n.
1. One favoring traditional views and values.
2. A supporter of political conservatism.
3. Conservative A member or supporter of the Conservative Party in the United Kingdom or the Progressive Conservative Party in Canada.
4. Archaic A preservative agent or principle.






left·ism also Left·ism Pronunciation (lftzm)
n.
1. The ideology of the political left.
2. Belief in or support of the tenets of the political left.


nevermind, i just verified, and im correct.

not to mention, conservatives actually favor lowering taxes because it puts more money in their pockets, not because of involvement.
ok ok im done.

[TheChosenGuy]

Originally Posted by "Ridge"Racer

con·ser·va·tive Pronunciation (kn-sûrv-tv)
adj.
1. Favoring traditional views and values; tending to oppose change.
2. Traditional or restrained in style: a conservative dark suit.
3. Moderate; cautious: a conservative estimate.
4.
a. Of or relating to the political philosophy of conservatism.
b. Belonging to a conservative party, group, or movement.
5. Conservative Of or belonging to the Conservative Party in the United Kingdom or the Progressive Conservative Party in Canada.
6. Conservative Of or adhering to Conservative Judaism.
7. Tending to conserve; preservative: the conservative use of natural resources.
n.
1. One favoring traditional views and values.
2. A supporter of political conservatism.
3. Conservative A member or supporter of the Conservative Party in the United Kingdom or the Progressive Conservative Party in Canada.
4. Archaic A preservative agent or principle.






left·ism also Left·ism Pronunciation (lftzm)
n.
1. The ideology of the political left.
2. Belief in or support of the tenets of the political left.


nevermind, i just verified, and im correct.

The liberal is in favor of having MORE government while the conservative is in favor of letting things be, opposing change, limiting of government, etc. I consider myself a libertarian.

And conservatives favor lowering taxes because it goes along with the whole let it be idea, otherwise known as laissez-faire philosophy. I highly favor the conservatives over the liberals.

["Ridge"Racer]

Originally Posted by civicracer32

Good thing it was a joke, I was prepaing a book in my mind =)

Really sad where this country is financially. I could write a book. Although, I highly doubt anyone would buy one from someone with an adult school H.S. diploma.

you dont have to be educated beyond high school to be "educated" any one man has the power to teach him self and utilize resources available. im one of them that didnt finish college.

["Ridge"Racer]

Originally Posted by TheChosenGuy

The liberal is in favor of having MORE government while the conservative is in favor of letting things be, opposing change, limiting of government, etc. I consider myself a libertarian.

And conservatives favor lowering taxes because it goes along with the whole let it be idea, otherwise known as laissez-faire philosophy. I highly favor the conservatives over the liberals.

well why do they tend to favor war or am i just really mixed up here?

sorry, i was never a big politics guy myself, i was always more interested in literature and philosophy. but even then politics have a role there lol

[Snake-eyes]

this doesnt really effect american car prices...so its not end of the world. Can still buy domestics

[wbb1211]

It is just not the bad loans people took on on their homes it is also has to do with propbety taxes going up. In florida people were just flipping homes. They would purchase on and not even take down the for sale sign. They would get ARM or interest only loans and sell the home for a good profit because the home values were going up so fast and you could sell in no time. Well a good ammount people got stuck with thoes homes when the market crashed. Lenders were giving out loans like candy and property values were going up way to fast. Now thoes people are stuck with a home they could not afford and when the ARM interest rate goes up and or the interest only period is up they are in deep trouble. It is their own fault. Now the prices there have went down which even creates other problems. I had a guy try to get me to take a ARM loan. I am so glad I didn't and stuck with my VA fixed rate.

["Ridge"Racer]

i kill you! thas the funniest isht ever

["Ridge"Racer]

Originally Posted by wbb1211

It is just not the bad loans people took on on their homes it is also has to do with propbety taxes going up. In florida people were just flipping homes. They would purchase on and not even take down the for sale sign. They would get ARM or interest only loans and sell the home for a good profit because the home values were going up so fast and you could sell in no time. Well a good ammount people got stuck with thoes homes when the market crashed. Lenders were giving out loans like candy and property values were going up way to fast. Now thoes people are stuck with a home they could not afford and when the ARM interest rate goes up and or the interest only period is up they are in deep trouble. It is their own fault. Now the prices there have went down which even creates other problems. I had a guy try to get me to take a ARM loan. I am so glad I didn't and stuck with my VA fixed rate.

fixed 5% ftmfw!

[Grizam303]

Originally Posted by Snake-eyes

this doesnt really effect american car prices...so its not end of the world. Can still buy domestics

Nobody effects car prices except manufacturers.

Also, the incredible shrinking US dollar will likely affect car prices, but probably not THAT much, as operations are dispersed all over the world.

With the falling dollar, foreign manufacturers have to worry about thinner margins in their export market, but the bigger factor is the declining car sales due to the lackluster domestic economy. This may cause auto prices to go down, since making any money is better than no money at all. This is very similar to the decision the Federal Reserve has to make in deciding whether it will try to tackle inflation or a bad economy. Unfortunately, we have both to deal with right now, and that's exactly why the economy is shaky - nobody really knows what's going on.

But the Fed knows that going back to the gold standard would almost instantly solve inflation. I've included a graph below, try to figure out when the US abolished the gold standard.

Edit: Gold standard effectively puts the Fed out of business. It's like Exxon investing in renewable energy.

[Grizam303]

Originally Posted by wbb1211

It is just not the bad loans people took on on their homes it is also has to do with propbety taxes going up. In florida people were just flipping homes. They would purchase on and not even take down the for sale sign. They would get ARM or interest only loans and sell the home for a good profit because the home values were going up so fast and you could sell in no time. Well a good ammount people got stuck with thoes homes when the market crashed. Lenders were giving out loans like candy and property values were going up way to fast. Now thoes people are stuck with a home they could not afford and when the ARM interest rate goes up and or the interest only period is up they are in deep trouble. It is their own fault. Now the prices there have went down which even creates other problems. I had a guy try to get me to take a ARM loan. I am so glad I didn't and stuck with my VA fixed rate.

Banks made their own bed by giving toxic loans to people who lacked both the ability to pay those loans (no income verification) and the appropriate credit-worthiness for loans of that size (bad credit score).

Credit scores are arbitrary to a certain degree on a person-by-person case, but in the aggregate, they are reliable. If you loan x amount of money to x amount of people with x credit score, you will get xx% of it back. The reason why borrowers with bad credit have to pay a higher rate is to make the xx% part of the equation work. This is called risk premium. In a perfectly efficient economy, virtually-zero-risk securities (treasury notes/bills [the government has never missed a payment]) and risky securities would net you a similar return once defaults are factored in.

Example:
-You invest $100m in a 5% treasury note. One year later, you ge