re: Q3 economic results “resilient” consumers keep spending. Was Covid the Mask off moment?

Posted on 10/28/26 at 8:07 am to notiger1997

Posted by TorchtheFlyingTiger

1st coast

Member since Jan 2008

3426 posts

Posted on 10/28/26 at 8:07 am to notiger1997

"new vehicles with loan terms more than six years old reached 35.55% in Q1 2026, up from 30.83% a year ago. Additionally, new loans with terms greater than 85 months increased from 2.95% to 3.33% over the same period.A similar pattern was observed in the used vehicle market. " Experian

Even worse, many if not most wont get them paid off before buying again. Instead they just roll negative equity into next purchase.

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Posted by TorchtheFlyingTiger

1st coast

Member since Jan 2008

3426 posts

Posted on 10/28/26 at 8:17 am to jizzle6609

quote:
How can you have people in their late 50's early 60s buying a house that they will pay a mortgage on?

Mortgage can be an effective financial tool for retirees.
Totally situation dependent. I recently helped my elderly mother buy a new home so she can relocate closer to us and a safer town. She took out a huge mortgage but can afford it w pension, SS and retirement funds. Paying cash would have depleted her reserves, forced her to sell current paid off home first making move more difficult to orchestrate, and triggered higher taxes due to large one time retirement withdrawal. Instead, she stretches out the expense and minimizes potential.of depleting her retirement funds. Her heirs will pay off the remaining balance or sell. Besides, her mortgage payment is fixed while pensions/SS are COLA adjusted so it's an inflation hedge and diminishing portion of her monthly expenses over time.

This post was edited on 10/28/26 at 8:26 am

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Posted by Bigdawgb