Agree. So many nations' balance sheets have ballooned since the GFC to stimulate their economies. It's been around a decade and not much of that debt has been paid, meaning the capacity to cushion the next downturn will be that much harder.
Households are getting up there. FOMO idiots in Australia borrowing to the hilt for property. Household-income ratio ~200%. Property prices now contracting (never learnt the lesson from the US in 2007), have negative equity (mortgage worth more than the property) while banks have to raise interest rates because they get funding from o/s. All these morons with interest-only loans are getting stung because they have to move to interest and principal and can't afford it. Lose your job (wage growth is stagnant), you are done.
Never understood taking out an auto loan. If you have to get a loan to drive a car, you don't deserve that car. Buy second hand and save the pain.
You are a little bit out of touch. Even second hand cars cost a lot. Depending on the model as well, and if it is SUV or car. And Toyotas and Honda’s tend to hold their value more.
Also, you must add in the fact that with today’s modern lifestyle—-people have to have the latest smartphone (or the maker will slowly phase them out), the latest fashions, cable/streaming service, wants to go out shopping or the movies, and wants a vehicle that has all the latest tech. You only really see hipsters driving Volvo 240s, Jeep Cherokees, and e30/e36/e46 3 Series, or e28/e34 5 series, old 4Runners.
Also, ever try buying cars on Craigslist? There is the “no low ballers, I know what I got”, yet they have a 2010 Toyota Camry with 170k on the clock, Hello Kitty bumper stickers peeling off the rear bumper, yet they want almost the full out the door price that they paid.
And let’s not start on after market warranties.
And the biggest thing, is that the second hand market is running out of cars.
