Is Now the Time to Buy?

Factors to Consider

While corona and or its variants continue to dominate news cycles, sustaining a constant state of uncertainty and placing intense pressure on our economy, there is another player out there that has the potential to disrupt our fragile economic outlook even more.

Carbon Scoring

It’s no secret the automobile market has been crippled by governments around the globe overreacting and mandating corona shutdowns, and the deliberate Chinese strategy to make many microchips unavailable, and now as if that were not enough, we have a sleeper “carbon scoring”.

About 2 weeks ago my wife was browsing the aisles of Super-Pharm.  Picking up a box of throat lozenges she looked at the back to review the ingredients and noticed a carbon score on the box.  She put it down to look at a competitors packaging and no carbon rating was found on it.  This alarmed her since we had just been discussing the new MasterCard program being launched in cooperation with the UN called “Doconomy” here are 2 links the first from the World Economic Forum  https://www.weforum.org/agenda/2019/05/this-credit-card-has-a-carbon-emission-spending-limit/

The second from Mastercard itself

https://www.mastercard.com/news/press/2021/april/mastercard-unveils-new-carbon-calculator-tool/

As we’ve witnessed before what starts out as an “educational” and “volunteer” program has the propensity to grow beyond the information stage into something more controlling.

                                                           Should You Buy a Car Now?

While true there are carbon emissions in the creation of a can of Pringles, or a throat lozenge, these spent carbon emission levels pale in comparison to the creation of an automobile and more importantly the operation of that automobile over its lifetime.

It takes very little imagination and or foresight to understand where this is all going.  Cars that are being bought and sold today, even the hybrids, run the very real risk of being worth a lot less or difficult to sell in the not-too-distant future.

The national vehicle turnover rate in Israel is 36 to 42 months.  The car you buy today, if you track with the national average will be ready to sell in the year 2025 or 2026. What impact on the future value, and or ease of vehicle sales, may we face at that time given the eagerness of national and international entities to regulate the carbon output?  What will be your complications at that time given the enthusiasm of individuals today to prefer electric cars (EV), and government sponsored promotion of EV’s? Only time will tell, one thing is absolute: a 2019 economy will not return.

The good news

The good news is a lease protects you from all these concerns.  You get to use the car of your choice now, for a lower monthly cost than buying and financing, and yet all the responsibilities, future compliance issues, and trends affecting car ownership fall squarely on the car owner, the lease company.

Author: ianglo

Just a transplanted Texan living in the Land of land's, Israel. Started maintaining and repairing cars at 9 years of age in my father's auto shop (not sure how much of an asset I was at that time). Later I became interested in helping people find and finance these expensive and necessary machines. Check out the website see if I or my staff can be of assistance to you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: