The Official No Need To Start a New Thread, Thread

[GS8]

Are high interest savings accounts worth it? I sold a ton of stuff on CL / FB and have some money I want to put somewhere to grow and use towards an eventual home purchase. GICs a better option today?

[unit]

you gotta compare the rates and decide how sure you are that you won't need that money anytime soon. if it's like hardly any difference then i always prefer the flexibility to take the money out instead of locking it in. never know what life throws at you. in both cases definitely use your TFSA/RRSP if you still have room.

[Badhobz]

depending on time frame, i would say just throw it into your TFSA. if youre gonna buy like 5-10 years down the road, then throw it in an index fund and forget about it. It'll still perform quite well.

GIC is good too given the interest rates nowadays.

[Hondaracer]

I’ve been seeing some ad’s for 5.5% 1 year fixed GIC

[headhunt3r]

is there any convenient way to find when a certain car model has arrived at a junkyard?

[unit]

i know how not to do that, call frequently. those guys are always assholes and if you ask more than one straightforward question you will get hung up on every time.

[donk.]

That's because the guys at junkyards are all drunks that live in trailer parks, with approximately 22-26 teeth

[underscore]

Row52 lets you set up notifications. I have some set up to notify me if the PnP here gets anything for my shitboxes.

[supafamous]

https://www.theglobeandmail.com/driv...e-with-a-very/

Wild - that's the pre-tax price from what I can gather. Other than a trophy car (like the Porsche I'm dreaming about) I can't wrap my head around paying $66k for a car. Other than my RDX I've never paid more than $21k for a car - the idea that a new one goes for more than 3x that makes me shake my head.

Brace yourself. The average price of a new vehicle hit a record high in Canada in June – $66,288 – up 21 per cent in one year and 47 per cent over four years, according to AutoTrader.ca’s price index report.

That, combined with higher lease and finance rates, has accelerated auto loan delinquencies, prompting one industry expert to predict that drivers will be forced to downgrade their cars and extend the terms of their loans or leases to keep their payments manageable.

“You’re talking about double-digit increases. I don’t think we’ve seen that before,” said Baris Akyurek, vice-president of insights and intelligence at AutoTrader.ca, an online marketplace for new and used vehicles.

Alberta and British Columbia residents paid even more for new vehicles. In Alberta, the average price was $69,764 – an 18-per-cent increase from June, 2022, when it was $59,124. In British Columbia, it was $67,807 – a 19-per-cent increase from last June’s $57,025. Other provinces felt the pinch, too. In Ontario, new vehicle prices reached $64,807 – a 22-per-cent year-over-year rise compared with June, 2022′s $53,136. In Quebec, it was $64,215 – 27 per cent more than June, 2022, when it was $50,461.

As new car prices rise, the financial burden on Canadians keeps growing. The average amount financed for a new vehicle was $53,023 in the fourth quarter of 2022, compared with $42,359 for the same period four years ago, according to consumer research company J.D. Power. At the same time, interest rates for leasing new vehicles rose to 5.5 per cent for the fourth quarter of 2022 from 2.8 per cent in the same quarter of 2018.

With some economists predicting the Bank of Canada will continue to raise rates to tame inflation, there’s likely little relief in sight for Canadians. “I think we’re at a 7-per-cent average interest rate for vehicles. That has [had] an effect, but it hasn’t had [the] effect on demand as we thought it would, yet,” said Charles Bernard, lead economist at the Canadian Automobile Dealers Association, a federation of provincial and regional dealer associations. According to CADA’s 2022 data report, nearly 1.64 million new vehicles were sold across the country in 2022 at 3,430 automobile dealerships. For the end of 2023, Bernard is predicting sales of 1.7 million units.

In June, 2023, Canadians paid an average of $797 a month on a new car payment. That, too, has skyrocketed 38 per cent from June, 2019, when monthly payments were $577 a month, according to AutoTrader.

The purchase price and the financing rate is adding to the cost of vehicle ownership, said Rebekah Young, head of inclusion and resilience economics at the Bank of Nova Scotia. “Both of those drivers have been on the upswing. There’s not a lot of reprieve for people looking to finance a vehicle in this type of environment,” she said.

Daniel Ross, a senior analyst at Canadian Black Book, which tracks the value of used cars, says the effect of rising interest rates hasn’t really been felt yet. “But if you want to get into a new car with a new payment, it’s going to be a very surprising reality.

“The result will be consumers downgrading their vehicle and elongating their terms of financing or leasing. They’re looking at all avenues to make their monthly payment more palatable once they get into the new car market.”

Some Canadians are already feeling the financial stress of vehicle ownership. Auto loan delinquencies are rising at a much faster rate than other types of credit, according to a recent report from credit-rating agency Equifax.

“We are seeing delinquencies in the auto space ticking up and that adds on to the ability to qualify and the financing rates that consumers could face. Interest rates are high and still going higher and we know that institutions are being more careful now in their lending practices,” said Scotiabank’s Young.

Despite pent-up demand, low supply and other challenges to the supply chain, including the strike by port workers in British Columbia, new car inventory levels have been increasing, but the numbers are still below prepandemic levels.

“New inventory has been slowly, gradually, moving up. Based on the marketplace data, we’re up by 58 per cent for June, 2023, over June, 2022. But when you compare this data to 2019, we are down by 46 per cent. Despite the fact there has been improvement, we’re still well below 2019 levels,” said AutoTrader’s Akyurek.

“If you go to a [car dealer’s] lot and you want [a gas-powered] vehicle right now, supply is getting to a point where, most of the time, you’ll be able to get it at a price, to be fair, that is not even close to what the prepandemic prices were,” said CADA’s Bernard.

Boosting the price of new vehicles over all is the growing demand and tight supply of all-electric and hybrid vehicles, which have longer wait times and are more expensive to manufacture because they require different types of batteries, equipment and minerals.

What might help to ease the financial burden on Canadian car buyers? “Supply needs to catch up to demand. Until that supply-and-demand mismatch solves itself, we’re going to be looking at higher prices,” Akyurek said.

Once there’s greater supply, he said, “probably we’re going to start seeing some softening. But on the other hand, we do not expect the prices to go back to pre-COVID levels any time soon.”

[Hondaracer]

It’s harpers fault bra

The price for higher end stuff and trucks especially has seemed to have levelled off though

A friend of mine just bought a 3500 Denali diesel for just over 100k brand new. I remember in the midst of Covid the Abbotsford auto all and many others were selling comparable trucks with 40/50/60,000kms for
110-130k

[radeonboy]

I have no pulse on the market, but I wonder what sort of factors contribute to the higher average selling price.

For example, how much of the average price is affected because the buying population is now skewing to those that are in a better financial position and more insulated from rising interest rates?

The average monthly payment of $797 while the average sale price of ~$67k works out to roughly 84-month loans assuming no interest... Yikes.

[Traum]

Originally Posted by supafamous

https://www.theglobeandmail.com/driv...e-with-a-very/

Wild - that's the pre-tax price from what I can gather. Other than a trophy car (like the Porsche I'm dreaming about) I can't wrap my head around paying $66k for a car. Other than my RDX I've never paid more than $21k for a car - the idea that a new one goes for more than 3x that makes me shake my head.

Is there really any surprise on the price though?

We know the trend for the cost of new vehicles have been going up for some years now. And esp in the last few years (bcos of COVID, chips shortage, supply chain issues and what have you), manufacturers have been shifting production to higher margin vehicles.

The Alberta average does not surprise me -- Albertans buy a lot of trucks, and nowadays, trucks are not cheap at all.

In BC, we sell a ton of Teslas (and other EVs), and EVs generally cost quite a bit more than their ICE counterparts.

But $66k... nowadays, I think that's enough to buy a 981 base Cayman with a few options?

[MG1]

My son sent me these links. People who have been to Japan probably know about this, but for regular folk who can't afford the plane tickets to see Japan and all its wAnderful weirdness, this'll have to do.

YouTube (Short URL)

YouTube

[ssjGoku69]

Originally Posted by GS8

have some money I want to put somewhere to grow and use towards an eventual home purchase.

First home purchase? Open up a First Home Savings Account (FHSA). You get the benefits of an RRSP with a tax deduction on contributions for your tax return and the benefits of a TFSA with no tax on withdrawal as long as it's for a first home purchase.

I think there are some redeemable GICs that were paying almost 5% annual interest last month, maybe less now. You could probably hold those within the FHSA. Talk to someone about the right investment type for you though.

[winson604]

Originally Posted by unit

the super save on 12th and clark always manages to be the cheapest in the LM.

2 weeks ago i got gas there for $1.77, elsewhere we saw anywhere from $1.89 to even $2.03 in the same night. i'm not one to drive around looking for cheaper gas, but $0.30 difference is pretty staggering, that's a difference of $16.50 when filling 55L.

Damn and I thought 15 cents wad already a pretty big swing but $1.77 and $2.03 is pretty wild though I guess depending on the time difference you see the rices the price may have changed but either way still high.

[EvoFire]

I'm not surprised when the bottom of the market has been effectively cut out.

A bunch of the cheapest entry level cars to buy are all gone
Ford Fiesta
Toyota Yaris
Honda Fit
Mazda 2
Chevy Spark

The only thing left is the Mirage. The effective shifts the bottom up to at least a Corolla level car. Couple that with the fact that due to shortage, most manufacturers would rather produce the high margin more expensive vehicles with their resources, and most manufacturers also hiking their prices with nary a discount in sight. Yeah I'm not surprised.

[GS8]

Originally Posted by ssjGoku69

First home purchase? Open up a First Home Savings Account (FHSA). You get the benefits of an RRSP with a tax deduction on contributions for your tax return and the benefits of a TFSA with no tax on withdrawal as long as it's for a first home purchase.

I think there are some redeemable GICs that were paying almost 5% annual interest last month, maybe less now. You could probably hold those within the FHSA. Talk to someone about the right investment type for you though.

Yes I would be first time home buyer here and I'm looking out-of-province so I'm totally down with a low to no penalty when it comes to withdrawals. I have the funds as is to buy but still shopping and want more money to grow because why not.

Thanks

[Hondaracer]

Originally Posted by EvoFire

I'm not surprised when the bottom of the market has been effectively cut out.

A bunch of the cheapest entry level cars to buy are all gone
Ford Fiesta
Toyota Yaris
Honda Fit
Mazda 2
Chevy Spark

The only thing left is the Mirage. The effective shifts the bottom up to at least a Corolla level car. Couple that with the fact that due to shortage, most manufacturers would rather produce the high margin more expensive vehicles with their resources, and most manufacturers also hiking their prices with nary a discount in sight. Yeah I'm not surprised.

Had a mirage for a month in Portugal, in Europe though it’s rebranded as a “space star” lol

I’d definitely take it over a Fiat 500 but that’s a very, very, low bar lol

[inv4zn]

Kia Rio / Hyundai Venue are still around, Nissan Kicks as well I guess.

The Mirage is closer to a rickshaw than a car IMO

[ImportPsycho]

Lil Tay has died, says post shared on official account

Her and brother on same day?
no word on cause of death?

[MG1]

Did somebody say................................ rickshaw?

Damn, I think all the streets in chinatown should be shutdown to traffic. Have rickshaws take people around. That would be awesome. How about Gastown?

All kidding aside, I love my Honda Fit. The thing is (Knock on wood) so freaking reliable. At least the engine. I abuse it, too. Still break the tires in second gear, gulolol. It takes a lickin' and keeps on tickin' Had it since 2008. Sat not being driven for ages. Air con doesn't work anymore and too cheap to fix it. Other than that, happy as a clam driving it to Bellingham every week.

Rickshaw, I mean, Mirage, eh?

[unit]

i rented a kio rio like 5 years ago and other than the uncomfortable headrests that put your neck in a forward position, it was actually a pretty good lil hatch.

[sonick]

Originally Posted by unit

i rented a kio rio like 5 years ago and other than the uncomfortable headrests that put your neck in a forward position, it was actually a pretty good lil hatch.

Rented a Hyundai Venue for 2 weeks out in the Maritimes.

Didn't realize new cars in 2023 still came with drum brakes lol.

Drum brakes in a car with apple carplay/android auto, heated seats, and push button start lol such an unlikely combination.

[Hondaracer]

This was a 2023 fiat Panda we rented..a brand new vehicle that had a worse radio than my 1993 civic lol





The panda was a typical econo shit box but it was infinitely better than the 500 fuck. Had a rental fiat 500 I drove 800kms in 3 days, that’s the biggest POS I’ve ever driven. I’d take a 92 Corolla over a fiat 500

[Badhobz]

^holy shit. I've seen garbage bins with better interiors.

Only thing redeeming is that dildo, Thrustmaster shifter. ME LIKEY