This is sobering...
Currently, the richest 1% hold about 38% of all privately held wealth in the United States. while the bottom 90% held 73% of all debt.
About 4 years ago I had over £100k in the bank, a bout of illness with a hint of near death I spunked a lot of it on God knows what whilst obvs not earning (self employed) and just going for it cos I didn't give a foook.It started with the housing market and the car market is going the same way. People are going to go through life with no house ownership, no car ownership, no savings, no wiggle room, no inheritance for their children and no investment in the future. If we don't invest in our future and everyone does the same thing the planet will cease to exist.
I understand people want to live for today and enjoy their lives. However at the expense of their children and their children's children and every generation to come after that. Not sure it works does it. We all can;t be Chris Harris can we.
If you work hard enough, are efficient and save hard enough why can't you save £40k in 3 years? Surely £40k in 10 years is a breeze. That is £333.33 per month. Or 30 boxes of cigarettes.
It's around 85% of new cars are financed. If you compare that to somewhere like Dubai, around 5% are financed, the rest are bought outright. That should give you an understanding of just how poor we have become in the UK.
I don't think we're heading for recession, for what that's worth. Brexit is causing uncertainty while the politicians postulate over the terms. While that is ongoing, people are naturally cautious. As soon as a deal is struck - no matter what that deal looks like - the uncertainty will shift and confidence will return. It happens to blue chip shares all the time, as soon as clarity is achieved, markets rally. Remove a CEO the city likes and the shares drop while he's replaced, get in a new guy and they rally back. Every time.
Add the Labour antisemitism row in and that fuels the problem further. So where we are is in a moment where the business community doesn't trust the Conservatives to get a decent deal for the country but they are far more scared of looney lefty Corbyn and what he could do if he gets power. Solve the Brexit deal and solve Jeremy and confidence will return from the top down.
In the car market, those than can afford 75k plus cars to add alongside others on their drive are not buying right now while they watch these key issues unfold. The middle market from 25k to 75k has been driven down because only those at the lower end are buying and so these cars are now pushing downwards to fit the buyer profile. It's not a new trend, happens in cycles and is directly related to confidence at the upper end of the market.
And MeMe and you then...
Currently, the richest 1% hold about 38% of all privately held wealth in the United States. while the bottom 90% held 73% of all debt.
Interesting thread - and I think the comment made that this forum is unlikely to be representative of the country overall is spot on.... both in terms of the level of disposable income and willingness to spend that income on items such as cars.
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A grand a month or 100k....jesus wept! Neither sound too attractive to me. You could probably run a new Ferarri for that same 1k per month. Even less if it appreciated.