Want to stimulate the economy, in six easy steps, all by your li’l ol’ lonesome? Now is the time to buy a new car.
Think about it. GM and Chrysler are flush with free money, and have brought back their Free Money to Most Anyone With a Pulse financing plans. Ford will have to follow suit. So you know the Japanese will play ball, and (shh, don’t tell anyone) so will the Germans. (The Koreans are already playing, and have been since the late ’80s.)
Lock in a fixed rate, and stretch that baby out for years. Usually, I recommend putting down no less than 20% on a new car, and getting the shortest terms you can find. But not these days.
For the first year or two, you might regret buying now, as you watch prices come down and interest rates stay low. But we’re in a window of opportunity here, and there’s no telling how long it might last. Here’s what I mean:
1. Bailout money is letting the carmakers make stupid loans again.
2. Desperation has prices low.
3. Sometime in the next 18-24 months, inflation is going to kick in.
4. I mean, bigtime.
5. That fixed rate at 6.1% or whatever is going to look awfully sweet when inflation has jacked up new loans up over ten percent.
6. You’re going to feel awfully good paying back that loan with dollars worth a third less than the ones you borrowed.
And that’s the Six Point VodkaPundit Plan for stimulating the economy. Fahrfugnugen.