My old vehicle
So I bought a vehicle from a Lithia auto dealer the other day. The saleswoman mentioned the skyrocketing prices of her LAD shares that she held through the lows of '09. That stock has gone from $1 to $75 over 4 years. Not bad.
And then I got to thinking why the stock has done so well. The company is making money off of schmucks like me. I don't like buying cars and this experience was no exception. It took extraordinary measures to get them to budge on the price. And after the fact I found out that I paid too much for the vehicle. Of course. I always do.....they are the pros. (Pun INTENDED!)
But the reason for this post is the interest rate I obtained with financing. (yes, financing)
1.62% for 5 years from Wells Fargo. I don't know how they can make any money at that rate.
Borrow the money on the short end and lend it longer I suppose. What happens when interest rates on the short end rise?
And even thoough I have good credit I dread to see what happens to the car industry if and when interest rates go up.
the maid and the new car;)