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Discussion Starter · #1 ·
The average U.S. new automotive purchase had a truck/car payment of about $750/month about 18 months ago.
Add about $400 to that with interest rates this year and a few more basis point raises over the next three months (with other inflation pressures); don't you feel some will drop reservations when the time for that truck loan? Got to believe not everyone is paying cash for these trucks. Ford, Fed Ex has already lowered expectations on revenue that impacted the market heavily over the last two weeks based on income forecast.
 

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The average U.S. new automotive purchase had a truck/car payment of about $750/month about 18 months ago.
Add about $400 to that with interest rates this year and a few more basis point raises over the next three months (with other inflation pressures); don't you feel some will drop reservations when the time for that truck loan? Got to believe not everyone is paying cash for these trucks. Ford, Fed Ex has already lowered expectations on revenue that impacted the market heavily over the last two weeks based on income forecast.
I was thinking that as well but not sure the car interest rates alone will really impact the sales. On a 72 month 70k loan the difference between 2% and 6% is $130 a month.

Now if you factor in inflation on food and energy and if they have an adjustable mortgage it could take a big byte out of their monthly free cash.
 

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Yep, the party is over for these manufacturers continuing to jack up prices to astronomical levels.

The Ford Lightning, even when it first came out, struggled to command $10,000 over MSRP. Now, seeing several of them sell on auction sites for prices closer to MSRP or even below, which means the sellers are losing money when you factor in that they had to pay taxes. Even Rivian pricing is combing down. Interest rates helped keep things somewhat affordable. Now, they're hitting everything at once. Something has to give. Stocks are declining. People are going to be pinching purse strings. Real Estate market has slowed drastically in the past 3 months. And the days of dealers naming their price for cars are coming to an end. Probably going to be a pretty hard fall, but hopefully, the end result will be some sense of normalcy once the dust settles. End the Covid talk. Get chip shortages under control. Get Russia out of Ukraine and maybe then, we can start to find some stable ground to stand on.

Fingers crossed.
 

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Discussion Starter · #5 ·
Yep, the party is over for these manufacturers continuing to jack up prices to astronomical levels.

The Ford Lightning, even when it first came out, struggled to command $10,000 over MSRP. Now, seeing several of them sell on auction sites for prices closer to MSRP or even below, which means the sellers are losing money when you factor in that they had to pay taxes. Even Rivian pricing is combing down. Interest rates helped keep things somewhat affordable. Now, they're hitting everything at once. Something has to give. Stocks are declining. People are going to be pinching purse strings. Real Estate market has slowed drastically in the past 3 months. And the days of dealers naming their price for cars are coming to an end. Probably going to be a pretty hard fall, but hopefully, the end result will be some sense of normalcy once the dust settles. End the Covid talk. Get chip shortages under control. Get Russia out of Ukraine and maybe then, we can start to find some stable ground to stand on.

Fingers crossed.
Agree; spending for a new car or truck is going down as fast as a swimming pool draining this time of year. People are not going to be able to pay a $1500 car payment. The cheap money is gone. As far as Russia, I pray but hope we don't back one crazy, mean dog in a corner when they hold the most significant nuclear weapons arsenal on the rock, we still have not learned to "stay out".
 
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