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
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
The Cities Bracing for Trump’s Immigration Crackdown
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
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Business
How Trump’s Deportation Plans Could Reshape Major Cities
In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economic Tremors
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Community Fabric Under Strain
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
Cities at a Crossroads
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
Looking Ahead
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
Business
Donald Trump Wins 2024 USA Election
Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Electoral College Victory
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Battleground State Performance
Trump’s victory was largely secured by winning several critical swing states:
- Wisconsin: Trump’s win here was pivotal in securing his path to victory.
- Pennsylvania: This state flipped back to Republican control.
- Georgia: Another key state that Trump managed to win back.
- Michigan: Trump successfully flipped this traditionally Democratic stronghold.
Popular Vote and Voter Priorities
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
- Economy and democracy were top concerns for voters.
- Abortion and immigration also played significant roles in voter decision-making.
Congressional Control
The election results extend beyond the presidency:
- Republicans are set to take back the Senate majority, securing at least 51 seats.
- Control of the House of Representatives remains undetermined.
Media Implications
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
- Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
- Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
- Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
- Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
- Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
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