Business

‘Remember to shop around’: Owning a car gets more expensive as interest rates soar on August 8, 2023 at 8:47 pm Business News | The Hill

Published

2 years ago

August 8, 2023

High interest rates and inflation that balloon car payments, maintenance and insurance are keeping the cost of car ownership high, experts said this week.

That means that while the price of used cars is down 11.6 percent from a year ago, according to the new Manheim Used Vehicle Value Index released Monday, the cost of financing a car and keeping it fit for use is rising.

“Used car prices seem to be decreasing at the wholesale level, but not necessarily translating into savings for consumers due to high interest rates and other costs associated with purchasing a vehicle,” Mike Trudeau, executive vice president of business development at Montway Auto Transport, told The Hill.

FILE – A salesman talks with customers in an Acura dealership lot in Wexford, Pa., on Sept. 29, 2022. (AP Photo/Gene J. Puskar, File)

Car prices are steadily dropping

Wholesale used car prices dropped 1.6 percent from June to July, far slower than a 4.2 percent dip the previous month, which marked the largest monthly decrease in used car prices since the start of the pandemic.

Used cars now have the same index value they did in April 2021, just over one year into the pandemic, said Chris Frey, senior manager of economic and industry insights for Cox Automotive, in a statement included in the Manheim Used Vehicle Value Index release.

“While the year-over-year price drop was again double-digit, let’s put some perspective on that. From July 2020, there were 22 straight monthly double-digit increases through April 2022; we’ve had just six double-digit declines since October last year, with only four of them consecutive,” Frey explained.

Frey said he did not foresee wholesale used car price reductions “of serious import” through the end of the year.

New car prices also remain high, but they’ve stabilized from their meteoric price rise after the pandemic restricted vehicle production, lowering supply amid increased demand.

The average buyer paid $48,808 for a new car in June, according to an analysis by Kelley Blue Book. That’s a 1.6 percent increase year-over-year, the smallest since the pandemic began.

Trudeau also anticipated the price of new cars may fall later this year or next.

More Americans looking to buy despite costs rising

With sticker shock slowing, some American car buyers are looking to buy again.

Used car sales were up 6 percent from June to July, Manheim found, and more Americans said they planned to purchase a car within the next six months than at any point over the past nine months.

But an auto loan payment may be significantly higher now, when the Federal Reserve has set interest rates at a 22-year high, than when rates were near zero at the beginning of 2022.

“If you were to finance a $20,000 used car with a loan term of 60 months, even a small increase in the interest rate could result in paying hundreds or even thousands more over the life of the loan,” Trudeau explained.

The Fed is weighing additional interest rate hikes at the September meeting as it works to bring inflation down to its 2 percent target. From credit card debt to mortgages, high interest could make it more expensive to borrow money.

Americans have weathered historic inflation for more than two years, and consumers’ car costs were not spared. While inflation cooled to 3 percent annually in June, down from its 9.1 percent peak the previous summer, motor vehicle maintenance prices remained elevated.

Car repair costs rose 19.8 percent year-over-year in June, according to federal consumer price data released last month. Maintenance and servicing was also up 8.6 percent annually, and insurance was up 16.9 percent.

‘We find alternatives’

Given the cost of car buying — and owning – these days, some consumers are getting creative.

“We find alternatives,” Brandon Chambers, who was visiting D.C. from Houston, told The Hill. When his son needed a car, Chambers said he would prefer to take out a 401(k) loan or a similar alternative than a traditional car loan.

While 401(k) retirement loan interest rates are typically a point or two higher than the prime interest rates, most employer-provided 401(k) plans allow participants to borrow up to $50,000 or 50 percent of their assets, whichever is less, tax-free.

The money, plus interest, must be paid back into the retirement account over a set period of time, typically quarterly over five years.

Trudeau encouraged car shoppers to explore their options and do their research.

“Always remember to shop around for the best loan rates and consider getting pre-approved for a loan before heading to the dealership,” Trudeau suggested. “That way, you’ll have a better idea of what you can afford and avoid any surprises down the line.”

Beyond the car’s sticker value, a myriad of factors including the resale value, fuel efficiency, maintenance costs and reliability can contribute to the total price of the car.

Trudeau said dealers that his company works with are seeing potential buyers walk in with a monthly budget rather than a target sticker price.

Check for tax credits when buying a car

There’s also a clean vehicle tax credit available for buyers considering a new electric vehicle — up to $7,500 for qualifying vehicles.

The average price of an electric vehicle dropped to $53,438 in June, according to Kelley Blue Book, a 20 percent year-over-year decline from the peak of $66,390 last June.

The Federal Trade Commission proposed a rule that would protect car shoppers from bait-and-switch advertising tactics, crack down on junk charges and make it easier to compare the actual costs and conditions.

A preliminary analysis found the new rules would save consumers more than $29 billion over 10 years.

“Our proposed rule would save consumers time and money and help ensure a level playing field for honest dealers,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, when the rule was announced last June.

Business, federal reserve, FTC High interest rates and inflation that balloon car payments, maintenance and insurance are keeping the cost of car ownership high, experts said this week. That means that while the price of used cars is down 11.6 percent from a year ago, according to the new Manheim Used Vehicle Value Index released Monday, the cost of…

Business

How Trump’s Tariffs Could Hit American Wallets

Published

2 days ago

July 11, 2025

Bolanle Media Staff

As the debate over tariffs heats up ahead of the 2024 election, new analysis reveals that American consumers could face significant financial consequences if former President Donald Trump’s proposed tariffs are enacted and maintained. According to a recent report highlighted by Forbes, the impact could be felt across households, businesses, and the broader U.S. economy.

The Household Cost: Up to $2,400 More Per Year

Research from Yale University’s Budget Lab, cited by Forbes, estimates that the average U.S. household could pay an additional $2,400 in 2025 if the new tariffs take effect and persist. This projection reflects the cumulative impact of all tariffs announced in Trump’s plan.

Price Hikes Across Everyday Goods

The tariffs are expected to drive up consumer prices by 1.8% in the near term. Some of the hardest-hit categories include:

Apparel: Prices could jump 37% in the short term (and 18% long-term).
Footwear: Up 39% short-term (18% long-term).
Metals: Up 43%.
Leather products: Up 39%.
Electrical equipment: Up 26%.
Motor vehicles, electronics, rubber, and plastic products: Up 11–18%.
Groceries: Items like vegetables, fruits, and nuts could rise up to 6%, with additional increases for coffee and orange juice due to specific tariffs on Brazilian imports.

A Historic Tariff Rate and Economic Impact

If fully implemented, the effective tariff rate on U.S. consumers could reach 18%, the highest level since 1934. The broader economic consequences are also notable:

GDP Reduction: The tariffs could reduce U.S. GDP by 0.4% annually, equating to about $110 billion per year.
Revenue vs. Losses: While tariffs are projected to generate $2.2 trillion in revenue over the next decade, this would be offset by $418 billion in negative economic impacts.

How Businesses Are Responding

A KPMG survey cited in the report found that 83% of business leaders expect to raise prices within six months of tariff implementation. More than half say their profit margins are already under pressure, suggesting that consumers will likely bear the brunt of these increased costs.

What This Means for Americans

The findings underscore the potential for substantial financial strain on American families and businesses if Trump’s proposed tariffs are enacted. With consumer prices set to rise and economic growth projected to slow, the debate over tariffs is likely to remain front and center in the months ahead.

For more in-depth economic analysis and updates, stay tuned to Bolanlemedia.com.

Business

U.S. Limits Nigerian Non-Immigrant Visas to Three-Month Validity

Published

3 days ago

July 9, 2025

Bolanle Media Staff

In July 2025, the United States implemented significant changes to its visa policy for Nigerian citizens, restricting most non-immigrant and non-diplomatic visas to a single entry and a maximum validity of three months. This marks a departure from previous policies that allowed for multiple entries and longer stays, and has important implications for travel, business, and diplomatic relations between the two countries.

Key Changes in U.S. Visa Policy for Nigerians

Single-Entry, Three-Month Limit: As of July 8, 2025, most non-immigrant visas issued to Nigerians are now valid for only one entry and up to three months.
No Retroactive Impact: Visas issued prior to this date remain valid under their original terms.
Reciprocity Principle: The U.S. cited alignment with Nigeria’s own visa policies for U.S. citizens as the basis for these changes.
Enhanced Security Screening: Applicants are required to make their social media accounts public for vetting, and are subject to increased scrutiny for any signs of hostility toward U.S. institutions.

Rationale Behind the Policy Shift

Security and Immigration Integrity: The U.S. government stated the changes are intended to safeguard the immigration system and meet global security standards.
Diplomatic Reciprocity: These restrictions mirror the limitations Nigeria imposes on U.S. travelers, emphasizing the principle of fairness in international visa agreements.
Potential for Further Action: The U.S. has indicated that additional travel restrictions could be introduced if Nigeria does not address certain diplomatic and security concerns.

Nigeria’s Updated Visa Policy

Nigeria Visa Policy 2025 (NVP 2025): Introduced in May 2025, this policy features a new e-Visa system for short visits and reorganizes visa categories:
- Short Visit Visas (e-Visa): For business or tourism, valid up to three months, non-renewable, processed digitally within 48 hours.
- Temporary Residence Visas: For employment or study, valid up to two years.
- Permanent Residence Visas: For investors, retirees, and highly skilled individuals.
Visa Exemptions: ECOWAS citizens and certain diplomatic passport holders remain exempt.
Reciprocal Restrictions: Most short-stay and business visas for U.S. citizens are single-entry and short-term, reflecting reciprocal treatment.

Impact on Travelers and Bilateral Relations

Nigerian Travelers: Face increased administrative requirements, higher costs, and reduced travel flexibility to the U.S.
U.S. Travelers to Nigeria: Encounter similar restrictions, with most visas limited to single entry and short duration.
Diplomatic Tensions: Nigerian officials have called for reconsideration of the U.S. policy, warning of negative effects on bilateral ties and people-to-people exchanges.

Conclusion

The U.S. decision to limit Nigerian non-immigrant visas to three months highlights the growing complexity and reciprocity in global visa regimes. Both countries are tightening their policies, citing security and fairness, which underscores the need for travelers and businesses to stay informed and adapt to evolving requirements.

Business

Nicki Minaj Demands $200 Million from Jay-Z in Explosive Twitter Rant

Published

4 days ago

July 9, 2025

Bolanle Media Staff

Nicki Minaj has once again set social media ablaze, this time targeting Jay-Z with a series of pointed tweets that allege he owes her an eye-popping $200 million. The outburst has reignited debates about artist compensation, industry transparency, and the ongoing power struggles within hip-hop’s elite circles.

The $200 Million Claim

In a string of tweets, Minaj directly addressed Jay-Z, writing, “Jay-Z, call me to settle the karmic debt. It’s only collecting more interest. You still in my top five though. Let’s get it.” She went further, warning, “Anyone still calling him Hov will answer to God for the blasphemy.” According to Minaj, the alleged debt stems from Jay-Z’s sale of Tidal, the music streaming platform he launched in 2015 with a group of high-profile artists—including Minaj herself, J. Cole, and Rihanna.

When Jay-Z sold Tidal in 2021, Minaj claims she was only offered $1 million, a figure she says falls dramatically short of what she believes she is owed based on her ownership stake and contributions. She has long voiced dissatisfaction with the payout, but this is the most public—and dramatic—demand to date.

Beyond the Money: Broader Grievances

Minaj’s Twitter storm wasn’t limited to financial complaints. She also:

Promised to start a college fund for her fans if she receives the money she claims is owed.
Accused blogs and online creators of ignoring her side of the story, especially when it involves Jay-Z.
Warned content creators about posting “hate or lies,” saying, “They won’t cover your legal fees… I hope it’s worth losing everything including your account.”

She expressed frustration that mainstream blogs and platforms don’t fully cover her statements, especially when they involve Jay-Z, and suggested that much of the coverage she receives is from less reputable sources.

Satirical Accusations and Industry Critique

Minaj’s tweets took a satirical turn as she jokingly blamed Jay-Z for a laundry list of cultural grievances, including:

The state of hip-hop, football, basketball, and touring
The decline of Instagram and Twitter
Even processed foods and artificial dyes in candy

She repeatedly declared, “The jig is up,” but clarified that her statements were “alleged and for entertainment purposes only.”

Political and Cultural Criticism

Minaj also criticized Jay-Z’s political involvement, questioning why he didn’t campaign more actively for Kamala Harris or respond to President Obama’s comments about Black men. While Jay-Z has a history of supporting Democratic campaigns, Minaj’s critique centered on more recent events and what she perceives as a lack of advocacy for the Black community.

The Super Bowl and Lil Wayne

Adding another layer to her grievances, Minaj voiced disappointment that Lil Wayne was not chosen to perform at the Super Bowl in New Orleans, a decision she attributes to Jay-Z’s influence in the entertainment industry.

Public and Industry Reaction

Despite the seriousness of her financial claim, many observers note that if Minaj truly believed Jay-Z owed her $200 million, legal action—not social media—would likely follow. As of now, there is no public record of a lawsuit or formal complaint.

Some fans and commentators see Minaj’s outburst as part of a larger pattern of airing industry grievances online, while others interpret it as a mix of personal frustration and performance art. Minaj herself emphasized that her tweets were “for entertainment purposes only.”

Conclusion

Nicki Minaj’s explosive Twitter rant against Jay-Z has once again placed the spotlight on issues of artist compensation and industry dynamics. Whether her claims will lead to further action or remain another dramatic chapter in hip-hop’s ongoing soap opera remains to be seen, but for now, the world is watching—and tweeting.