Actually, Tesla is in a tizzy over it according to what I heard on the call - and for good reason. Interest rates are high relative to income. The two go together. Just look at the X post comments earlier about car sales around the country. People are not qualifying for the loans like they used to. This tightening is also bank risk related as they are still dry heaving from the commercial real estate crisis.From what I can tell, the ones in a tizzy over it are the ones that want to get rich quick - especially in the media
Meanwhile, we're probably 30K upside down on our Model YP. Imagine what my bank thinks on this fact. There's no security there, it's a negative asset.
When I back out new home prices (needing $100K income), the average family household can't afford a new car.
This is household income, so lots of combined salaries mixed in. I use household income because that's who makes the house payment. For a 1/2M home you need about $120K income @ 7% interest to qualify... is what I figured yesterday.
Median US income is only like $34K. If you're single in this category, you likely can't even afford the car you currently own.
Median US income is only like $34K. If you're single in this category, you likely can't even afford the car you currently own.