Millennials set to face most economic pain in months ahead, RBC says. Here’s why - National | Globalnews.ca

Bidding up used cars during covid was peak bubble behavior

Work trucks costing what a start home used to cost a decade ago

I guess with at truck you work AND live in it

I bought a 2017 tundra with 60,000k on it from a dealer for 40k this year. It’s not fancy and has few bells and whistles, but I can live with that at less than half the cost of newer ones.

I'm super into urbanism and love my bike, but unless there's good bike infrastructure in your area, you're risking your life. I know and keep riding anyways but most people aren't willing to take that risk. What we need to do is organize to push our governments to provide safe infrastructure for all road users.

Even my bikes are like 10k now...

You are talking about least expensive, they were talking about average.

Where are you getting $17K from? According to Kia's website, they start at $19,933. And that's pretty much the cheapest new car in Canada. That's way out of reach for many people, and the used market is insane.

Earlier this year, my 2005 Civic with 301,000km was totaled. I bought it in 2013 for $5,000 with 121,000km. From my research, if I had sold it before it was totalled, I probably could have gotten more than $5,000 for it, even with the extra decade and 180,000km.

How many Rios do you see on the road for every F-150?

It was like 12 years ago I was looking at $10k new Kia rio.

It's getting hard to find cars period. I forget where I read this stat, it was only in the last day or two too, but the number of cars being made, and sold for under $30k, it's like a small handful of models in total. And good luck actually finding many of said models on local lots, the factory production numbers of these cheaper models is super low.

Also you drove by a Kia lot lately? I ride by one near us fairly regularly on my road bike, and that lot is sparse. The only vehicles on it are SUVs, and there isn't even very many of them. So yeah the internet says the Kia Rio is $17k, but can you actually get one in your hands for that?! I mean sure, maybe one or two. But remember, we are talking averages here, for the whole marketplace.

$60k average price is definitely in line with the observations I've been able to make, and it definitely reflects the laneways on my block. You are right, monster trucks and SUVs, but that reflects the current market. I'm the only person on my block that only has cars in their garage.

Is it really that expensive to own a car outside of the U.S.? That seems absurd

Here is an alternative Piped link(s): https://piped.video/watch?v=ztHZj6QNlkM

Piped is a privacy-respecting open-source alternative frontend to YouTube.

I'm open-source, check me out at GitHub.

This really helps me understand the situation better. I appreciate the time and thought put into this response. It's times like these I am thankful I didn't overspend. I listened to my parents and bought a house that wasn't flashy but was suitable for my situation. Most people I know did not do that, and I constantly wonder how they are making ends meet. Some of them make less than I do.

If you are still on variable, no real change

Au contraire. It would blow your mind how many people are on these bullshit fixed payment variable mortgages. There's people that unknowingly have these weird scenarios like effectively 60+ year amortizations now, due to the sharp increase of interest this past little while and the fact their payments haven't even been covering their interest for some time, let alone the principal. The banks won't actually spill the numbers as to how many of these types of mortgages there are, but thats all banks peddled the past decade.

I renew next year on a fixed mortgage. To be fair, I've also known that this has been a loooooooong time coming, and hence didn't overspend when we bought in 2019. The pressure sure as fuck was there, the realtors like you can afford way more, the mortgage people were like spend spend spend. Even our boomer parents, who don't live under any sort of modern economic reality, were trying to push us towards the bloated mcmansion end of the spectrum, market never goes down, maximize, blah blah blah.

Anyone with half a brain had to have known this was coming. I'm actually for real surprised it took this long. While nobody could have forseen COVID, or the super sharp inflationary spike that resulted, even as far back in 2019 I suspected inflation and higher rates were soon going to be creeping in. It wasn't rocket science. While I didn't exactly predict >7% interest, at the same time I honestly had 0% expectation I'd be renewing for the one point whatever our current mortgage is at.

In fact, I'm doom and gloom on our country as a whole. I think we've been glutenous little piggies for far too long, and the central banks have already gone way too far overboard trying to get to their imaginary little targets. I think they've already popped the bubble, and we just won't know this for sure until defaults start to really spike by Q3 2024. Anyone in Toronto or Vancouver renewing on these bullshit fixed payment plans maybe is just going to walk away, it's probably going to be too much payment and amortization to overcome in some of these overheated markets, against rapidly declining values. Toronto and Vancouver have already flattened out, which might be indicating a large correction on the horizon. Rentals are going to spike, already have in most markets, and that's going to push all the renters out. Basically I think it's going to be a fucking disaster. Hope I'm totally wrong, but I'm not 100% sure I am just yet.

We need McMansions in the greenbelt to solve housing!!!! /s

If we assume people are capable of making rational decisions and participate in a free market, then they absolutely are to blame for taking on ridiculous debt loads. If we assume the opposite, then their actions were the product of the environment. We seem to want to have it both ways. We want people to be free to do whatever they want without (government) intervention when the number's going up. For example people were really opposed to the introduction of the mortgage stess test. On the other hand we want to absolve people from responsibility and defer to the environment when the number is going down and they're suffering post their earlier decisions. "Why didn't someone do something about X, Y or Z which we perceive is the reason of our suffering."

Personally I do think people's actions are a lot more a product of the environment than anything else. If you ask me, most people shouldn't need to participate in asset markets to have a place to live or have income during retirement. They simply can't compete. But many fellow Canadians don't feel this way, especially when the number goes up. And so we are where we are. 🥲

They did this trick in america in 2000s, Canada mostly avoided that fuxkenin

Looks like they are gonna get y'all now.

Buying into a bubble doesn't make people a victim. Risk was taken and those who were not properly prepared will be fucked.

This is a classic FAFO situation.

With that being said, yeah, big picture all working people getting fucked.

The banks have started doing "infinity mortgages", in which the lendee only pays the interest and never the principle because of how the interest rats have gone. CTV News did a little primer on infinity mortgages,

When you boil an infinity mortgage down, it sounds like renting since there is no prospect of paying off the principal. Are infinity mortgages here to stay? I don't know, I do know I won't have shocked pickachu face when they stay a fixture of the Canadian mortgage market.

Maybe they will do that, maybe it will work. But if they are doing this, i doubt home prices will keep going up. They need low benchmark interest rates to justify current prices.