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Discussion Starter · #1 ·
Just wondering how many people may be cooling their car buying with the higher interest rates and lowering wealth effect due to the falling markets. I have the impression that most people lease EVs, just like luxury ICE vehicles. The cost of leasing and financing is going way up. So am curious what people on this forum are thinking. Or do only "rich" people buy EVs.
 

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I have a deposit on one at my dealer. With my low mileage BRZ for a trade, and the $8000 Canadian incentive, I can get within $5000 or so. I'm not sure if I'll finance the rest, or just pay it out, as I can do either. If I can get a reasonable rate, I'll finance, with an any time payout, as my Samurai is worth about $5000, and I may sell it.
 

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Just wondering how many people may be cooling their car buying with the higher interest rates and lowering wealth effect due to the falling markets. I have the impression that most people lease EVs, just like luxury ICE vehicles. The cost of leasing and financing is going way up. So am curious what people on this forum are thinking. Or do only "rich" people buy EVs.
I keep wondering about how long the US market is going to last for the big truck/SUV market with gas prices reaching all-time highs...

I guess owners can still polish the fenders even if the gas tank is empty…
 

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Just wondering how many people may be cooling their car buying with the higher interest rates and lowering wealth effect due to the falling markets. I have the impression that most people lease EVs, just like luxury ICE vehicles. The cost of leasing and financing is going way up. So am curious what people on this forum are thinking. Or do only "rich" people buy EVs.
Pay cash and you don't care what the interest rates are. Most people don't do that, so it may minimize supply chain delays and price increases.
 

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Discussion Starter · #5 ·
Re gas/diesel prices, at this point it is kind of a vicious circle. Higher diesel pushes up supply chain costs and adds to inflation. Hate to say it, but what we need now is much higher interest rates to slow the economy and break that cycle. As disposal income continues to decline, demand has to decline as well, and that should slow inflation. Oil prices, though, are a global commodity, and unless we have a global recession, I don't see that going down anytime soon. We just don't have enough supply now to meet world demand, esp as China starts to open up again from their covid lockdown.

That's why I am asking how many will be cooling their car buying with all this going on. Of course, those will cash, will not be affected as much. But like I said in my first post, my impression is that most EVs are leased. I could be wrong, though....
 

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Every EV manufactured will be sold at or above MSRP for the foreseeable future, even if the stock market drops another 20%. The math just works out to make it a no brainer for anyone who drives regularly. Supply is well below demand. The market dropping is really just a retiree and rich person's problem right now as unemployment is very low. Inflation is more problematic, but in some ways makes you want to lock in price now with no end of inflation in sight. I'm not sure how true it is that most lease EVs. Just like I feel many get it wrong when they compare a $50k EV against a 50k luxury car. Most people I think are cross-shopping a $30 or 40k gas vs $50k EV around here. Similarly a $70k EV against a $50k gas for those with more money to spend.

From a working-person's perspective, we've put 210k miles on our Honda Civic in the past 11 years. Right now at $5/gal it costs just shy of $2000 annually. The Civic will not last forever, so we must buy either an EV, hybrid or gas shortly. Price wise, straight-gas or EV make the most sense when purchasing another 10-year car. Hybrids are approaching the cost of EVs and have "double" the maintenance costs. The only real benefit is road tripping today. Gas makes sense if only driving a few thousand miles per year. The cost in the Solterra is expected to be ~$200 annually for us using our cheap overnight charging rate. We have cross-shopped with similar cars such as the ~$30k Crosstrek, but even at $20k more money, the Solterra comes out on top when combined with the fed/state rebates, lower operating and maintenance costs, with the intangible of having fuel diversity (second vehicle is gas). The real question is will it make it to 200k miles without needing a major $5000+ repair.

Gas trucks on the other hand...it's like ~2008 all over again with cash for clunkers. Seriously thinking of trading in our 6-year-old F-150 on the Solterra while it still has some value in it (instead of selling Civic) and jumping on the waitlist for the Lightning. I know RV supply/demand are turning back to "normal" and they are selling well below MSRP again. My gut says that will carry over to gas trucks too over the next year.
 

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Every EV manufactured will be sold at or above MSRP for the foreseeable future, even if the stock market drops another 20%. The math just works out to make it a no brainer for anyone who drives regularly. Supply is well below demand. The market dropping is really just a retiree and rich person's problem right now as unemployment is very low. Inflation is more problematic, but in some ways makes you want to lock in price now with no end of inflation in sight. I'm not sure how true it is that most lease EVs. Just like I feel many get it wrong when they compare a $50k EV against a 50k luxury car. Most people I think are cross-shopping a $30 or 40k gas vs $50k EV around here. Similarly a $70k EV against a $50k gas for those with more money to spend.

From a working-person's perspective, we've put 210k miles on our Honda Civic in the past 11 years. Right now at $5/gal it costs just shy of $2000 annually. The Civic will not last forever, so we must buy either an EV, hybrid or gas shortly. Price wise, straight-gas or EV make the most sense when purchasing another 10-year car. Hybrids are approaching the cost of EVs and have "double" the maintenance costs. The only real benefit is road tripping today. Gas makes sense if only driving a few thousand miles per year. The cost in the Solterra is expected to be ~$200 annually for us using our cheap overnight charging rate. We have cross-shopped with similar cars such as the ~$30k Crosstrek, but even at $20k more money, the Solterra comes out on top when combined with the fed/state rebates, lower operating and maintenance costs, with the intangible of having fuel diversity (second vehicle is gas). The real question is will it make it to 200k miles without needing a major $5000+ repair.

Gas trucks on the other hand...it's like ~2008 all over again with cash for clunkers. Seriously thinking of trading in our 6-year-old F-150 on the Solterra while it still has some value in it (instead of selling Civic) and jumping on the waitlist for the Lightning. I know RV supply/demand are turning back to "normal" and they are selling well below MSRP again. My gut says that will carry over to gas trucks too over the next year.
I know SoA has been running a 1.9% deal for 48-month financing. Do you know if this will be available for the Solterra?
 

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I know SoA has been running a 1.9% deal for 48-month financing. Do you know if this will be available for the Solterra?
I would doubt it, it's not like they need to incentivize people to buy the Solterra, being in such short supply for the foreseeable future. Then again, you could say that about all Subarus right now.
 

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Discussion Starter · #11 ·
As expected, fed raised rates .75 yesterday and more to come next month. And recession fears are increasing. Markets continue to tank. Does that change anyone's mind about buying a Solterra?
 

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As expected, fed raised rates .75 yesterday and more to come next month. And recession fears are increasing. Markets continue to tank. Does that change anyone's mind about buying a Solterra?
Not me, but maybe the savings account I'm paying it from will pay more interest than it is now (could hardly be lower). Took my "Solterra money" out of the market a while back and stashed it in my savings account so at least it wouldn't shrink any further (but not before it had already shrunk some).
 

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Discussion Starter · #15 ·
Not me, but maybe the savings account I'm paying it from will pay more interest than it is now (could hardly be lower). Took my "Solterra money" out of the market a while back and stashed it in my savings account so at least it wouldn't shrink any further (but not before it had already shrunk some).
You were smart. But you might be in the vast minority. Having said that, I do get the impression that EV buyers are mostly more well to do, and have more cash that the average Joe public.
 

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My local credit unions are 2.0 to 2.5% right now. Since we are not able to really negotiate price, no need to use the dealer's financing (which they get a kickback from).
My local credit union told me their best rate for 48 months is 2.6. Three days later they said it would be 2.95. I hope the rate increases slow down a bit.
 

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You were smart. But you might be in the vast minority. Having said that, I do get the impression that EV buyers are mostly more well to do, and have more cash that the average Joe public.
You're definitely right about current typical EV buyers. Those who are buying new, anyway. This will be my second new EV, third EV. First new car I've ever been able to pay cash for.

I'd have been a lot smarter if I'd moved my money to savings about mid-November last year. That ol' 20-20 hindsight.
 

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Discussion Starter · #18 ·
You're definitely right about current typical EV buyers. Those who are buying new, anyway. This will be my second new EV, third EV. First new car I've ever been able to pay cash for.

I'd have been a lot smarter if I'd moved my money to savings about mid-November last year. That ol' 20-20 hindsight.
Well, the market decline started with the risky no sales/profits stocks. I started selling then. Then it spread to the high P/E tech stocks. Now it is everything. Crypto getting slammed. Even oil stocks are getting hit now. Gold, the traditional inflation hedge, was staying flat, but I see today it is moving up a bit now.

Not a lot of places to put your money these days. I have some money in MICs (private mortgage investment corps), paying a steady 7+% dividend for decades actually, even through the 2008/9 housing bust. I get my next report from them today or tomorrow. Will see what they are saying now. And I am nibbling on some stocks that I consider good buys for the longer term. And I do trade some when I see an opportunity.
 

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Traditionally, credit unions use member money to fund new loans so they are not as dependent on federal interest rates, but many banks use underwriting that are more sensitive to federal lending rates. Home mortgages are the only lending product I've ever heard of allowing customers to lock in rates and that's generally only after most of the paperwork is completed. Where you get your loan will determine all the financing information, not here. There's still a chance Subaru may have decent rates they extend to Solterra that are below whatever the industry is doing at the moment.
 
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