In a time of economic uncertainty, the White House is desperate to collect taxes to address the growing inflation shock facing the nation. This has led to a new law impacting the silver stacking community, who are feeling the effects of rising gas prices, car repairs, insurance costs, and decreasing car values. As Newsweek reports, Americans are struggling to afford their cars, marking a potential turning point in the country’s relationship with automobiles.
The high inflation rates in recent years have contributed to the increasing costs of everyday essentials, including cars. During the pandemic, new and used car prices rose to record highs due to supply chain disruptions and chip shortages. This has made car ownership increasingly unaffordable for many Americans, with only a small percentage of new car listings priced below $30,000.
Furthermore, CNBC highlights the rising costs of car repairs, attributing the increase to factors such as heavier, more complex vehicles, new materials and manufacturing methods, and a shortage of talented technicians. Repair costs have been rising above the overall rate of inflation, further straining the wallets of consumers.
To cope with these financial challenges, many Americans have turned to auto loans to finance their vehicle purchases. However, high loan-to-value ratios on auto loans pose risks for borrowers and lenders, particularly in light of decreasing car values. Negative equity – when a car’s value is less than the amount owed on the loan – can result in borrowers owing more than the car is worth.
As the cost of car ownership continues to rise and the future of personal vehicle ownership becomes uncertain, experts predict a shift towards self-driving or electric ride shares. Business Insider reports that by 2032, only 20% of Americans will own personal cars, with the majority relying on ride-sharing services for transportation. This change is expected to save families thousands of dollars per year, making electric ride shares a more cost-effective option than owning a car.
In the face of these economic challenges and shifting trends in transportation, many individuals are turning to precious metals as a way to protect their wealth. Silver, in particular, is seen as a safe investment option, especially as its price remains relatively low compared to gold. By holding onto physical silver, investors hope to safeguard their finances against the uncertainties of inflation and economic instability.
Definitions:
1. Silver stacking: The practice of accumulating physical silver as a form of investment or wealth preservation.
2. Loan-to-value ratio: A financial term that compares the amount of a loan to the value of the asset being purchased, such as a car.
3. Negative equity: A situation where the value of an asset, such as a car, is lower than the amount owed on a loan taken out to purchase it.
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