Raising interest rate = less wait time for model x?

[usa_firefly]

The rates are pretty crazy nowadays. I was thinking about upgrading my Model Y to X, but with rates starting at 5.99% even with excellent credit, it's simply not worth it.

Instead, I'll add to my dividend stock portfolio at a discount (stick prices are down now) to take advantage of dividend growth compounding and save up a downpayment using ridiculously high (3%+) online savings account yield.

So, yes, there is a direct correlation here, folks.

 

[jboy210]

The rates are pretty crazy nowadays. I was thinking about upgrading my Model Y to X, but with rates starting at 5.99% even with excellent credit, it's simply not worth it.

Instead, I'll add to my dividend stock portfolio at a discount (stick prices are down now) to take advantage of dividend growth compounding and save up a downpayment using ridiculously high (3%+) online savings account yield.

So, yes, there is a direct correlation here, folks.

Yep. And the correlation will get even stronger since Powell says they are not done raising rates. Look at the impact to the housing market.

BTW, 3% on a savings account is amazing. We are doing a bit better on CDs and Treasuries, but nowhere near that on savings. Can I ask where you are getting 3% on savings?

 

[chipstacks]

I don't think you can only look at car loan interest rates as there are other factors in play. For example, if you have a loan APR of 5%, but have money in a high yield savings account in the 3% range, you're basically netting out at 2% APR. It's not like everyone's paying high rates while not having access to higher returns on their money. In this environment, it goes both ways.

Of course, this is assuming one has assets along with savings and/or investment strategies rather than living paycheck to paycheck and buying a car they can't really afford. Those people fall in the financially irresponsible category, and they'll buy cars and other depreciating assets regardless of how high interest rates are.