Larry Myers

Daily Note

October 31, 2023

The media is dogpiling on the news that Ford and GM are scaling back their investments in EVs. Yes, EVs are expensive, but so are most new cars. The big problem that the auto manufacturers are facing is that 0% interest rates for financing are gone. Suddenly people can no longer afford the monthly payments that come with an auto loan for a new car. This is really no different than what is going on with the housing market. Faced with spending $45,000 at 5% people are going to choose to hold on to their existing cars for a few more years, especially when their current loans are free financing deals.