Future of Racing? EV Content

derklug said:

Honda's North American president has said that these long loans are going to kill the industry because no buyer will have any value in their car by the time they are done paying it off.

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I feel like its a bubble that will crash hard, far too much growing negative equity. Its amazing how much money someone can spend on a vehicle with someone else's money when they reaaally cant afford it. I dont like any loans period lol

blk02edge said:

I feel like its a bubble that will crash hard, far too much growing negative equity. Its amazing how much money someone can spend on a vehicle with someone else's money when they reaaally cant afford it. I dont like any loans period lol

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I agree, but as long as banks are cool with rolling negative equity into new loans to keep making that money, it's not going to change until like the housing bubble people start defaulting in droves.

mariusvt said:

I agree, but as long as banks are cool with rolling negative equity into new loans to keep making that money, it's not going to change until like the housing bubble people start defaulting in droves.

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How's the saying go.....rinse & repeat.

We never learn from our mistakes.

GTSpartan said:

How's the saying go.....rinse & repeat.

We never learn from our mistakes.

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It's the 21st century American dream. How much can you "own" right now.
Gotta impress people on social media.

Banks won't learn, cause they'll get bailed out. Consumers won't learn cause most believe the sun will stay out and it'll never rain.

mariusvt said:

I agree, but as long as banks are cool with rolling negative equity into new loans to keep making that money, it's not going to change until like the housing bubble people start defaulting in droves.

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This shit has been happening for a while, but it seems to be getting worse recently.

My wife did finance at a BMW dealership, there are 2 types of people who buy BMWs, the first one can buy it outright and the entire purchase is a month of pay, the other kind is turning in a 2 year old 3 series on a new X5 with $15K in negative equity because they "need a new car". 2 years later they do the same shit.

I remember her talking about some lady who would buy a new car every year and roll the equity, she only made like $30k per year and had a loan of almost double the value of the new car. Management would have to step in and sweet talk the underwriters at the bank to get them to accept it. The interest rate was well into the double digits.

Not too much fun to drive / race but the the other big advantage of EV cars that many people don't know is lack of response to DA changes . EV car will run the same number at ATCO with low DA and Denver with ~6000 DA . Gas car will have like 1-2 second swing between DA changes like that .

mariusvt said:

I agree, but as long as banks are cool with rolling negative equity into new loans to keep making that money, it's not going to change until like the housing bubble people start defaulting in droves.

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Yea, they cant possibly keep going forever, what goes up must come down and IMO the auto industry is going to crash hard regardless of tech as people are scary amounts under water as it is. These loans have become retarded.

blk02edge said:

Yea, they cant possibly keep going forever, what goes up must come down and IMO the auto industry is going to crash hard regardless of tech as people are scary amounts under water as it is. These loans have become retarded.

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Yea, household debt is at record highs.

Higher household debt doesn't surprise me. Credit interest rates are low, while the consumer has an increased demand for higher cost vehicles, higher cost housing, etc. So many people I personally know pretty much never carry cash. Just plastic. Unfortunately, it's then too easy to surpass your monthly budget and then not pay off entirely the credit charges made in that month. Carrying it forward while seeing the debt increase. That's not even taking into consideration those who buy expensive vehicles with a small down payment and a high monthly loan/lease payment. I get offers in the mail routinely offering zero down and no payments for 2, 3, even 5 years on furniture. So yes, not surprising higher household debt today.

I don’t think the future is solely EV. I think it will be hydrogen powered vehicles that eventually will break through. EV will have a market share but not as big. EC will always have its place until its legislated out of existence.


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1.) I made this thread before the lockdown..who would've guessed that we would've been watching iRacing IMSA races on TV...

2.) Also, check this out. Inside Roborace: the Formula One for self-driving cars