Maybe Don’t Buy A New Car Right Now

As far as enthusiasts are concerned, it’s good to see lots of new-car sales. After all, the faster a dream car you can’t currently afford flies off the lot, the cheaper it will be in five years when depreciation really sets in. And yet, even though I’m potentially shooting myself in the foot here, I have to say it: maybe don’t buy a new car right now. There are probably some exceptions, such as picking up something you can easily buy in cash, but unless you absolutely need to, it simply feels far too risky to take on a new loan you’ll spend the next 36 to 72 months paying off while the economy is in absolute chaos.

The stock market isn’t the economy, but it still has a big impact on the economy, and the line just keeps going down. The S&P 500 has fallen more than 5% year-to-date, and the Dow is down more than 3%. It’s actually worse than that, though, because the lines started going up as Trump’s second inauguration drew closer. Ever since Trump started this completely unnecessary trade war over ever-shifting reasons, the bottom has dropped out. The S&P is down closer to 10% since February 19, which was — checks notes — less than a month ago? That may not feel right, but I just checked the calendar, and it’s accurate.

At this point, it’s impossible to pretend we aren’t headed into a recession, especially since Republicans are already telling us it’s actually a good thing they’re tanking the economy.

If there were rational people in charge, and something extraordinary had happened that we couldn’t control, that would be one thing. But no one forced Trump to crumple up the trade deal he, himself, negotiated during his last term, in order to start a completely unprovoked trade war with our closest allies. If you thought Republicans might see the error of their ways and stop the insanity they, themselves, created, I have some terrible news for you. They’re just doubling down. 

As the Hill reports, in an interview with CBS News on Tuesday, Commerce Secretary Howard Lutnick was asked whether the Republican trade war would still be worth it if it caused a recession. “These policies are the most important thing America has ever had,” Lutnick proceeded to say, following that up with, “It is worth it.” He then blamed Biden (who isn’t President) for anything bad that happens as a result of policies Trump (who is President) institutes, suggesting “The only reason there could possibly be a recession is because of the Biden nonsense that we had to live with.”

Aside from the part where the Biden administration was undeniably fantastic for the stock market, Republicans really are going with “bad stuff is good, actually.” That may work on those desperate to hear whatever lets them avoid admitting they voted for the wrong person, but it isn’t going to stop companies from laying people off. While some may be able to convince themselves high unemployment and economic turmoil are actually good things, you can only repeat, “All things work together for good,” under your breath for so long before it starts to lose its meaning.

Automotive tariffs were always going to make cars more expensive, as well as a whole lot of other products. That was undeniable because, in addition to the entire global supply chain being so interconnected and factories being expensive and difficult to move, even if a few automakers were somehow immune, the increased demand for those more affordable cars would drive their prices right back up. There was no way it was going to be a good time to buy a new car. 

No one should be surprised that Trump is doing what he said he would do, either. If you voted for a version of Trump you made up in your head who wouldn’t have done all this in the first place, I don’t know how to tell you this, but you played yourself. 

Politicians doubling down on policies that are actively hurting the country, while openly saying they’re happy to crash the economy, paints a pretty clear picture: They aren’t backing off, and things aren’t going to get better any time soon. You probably need a car, but do you actually need a new car? That’s either a whole lot of cash to part with, a years-long financial obligation, or both. The last thing I want is to see layoffs turn into financial disasters for people struggling to pay for basic necessities, just because they were a little too optimistic early on and signed up for an expensive car payment.

Maybe Republicans will finally back down, and things will stabilize. Maybe they won’t, and things will continue to get worse. But, unless your car just died and you desperately need a brand new one, maybe don’t buy a new car right now. At least if you wait another six months, you’ll have a better idea of what’s going on: Right now, all signs point to everything getting much worse, and the best thing you can probably do is stack cash and maybe figure out how to raise your own chickens. That’s going to hurt enthusiasts hoping to find half-price CT5-V Blackwings in a few years, sure, but right now we have much bigger concerns.