buying Weidmann - Do not see any widespread deterioration in financing conditions
Complete Guide: How to Buy a Used Car
The single easiest way to save money when buying a car is to purchase a used model instead of a new vehicle. When you buy a new car, the second you leave the dealer's lot, it starts to rapidly depreciate, losing a significant amount of its value in the first few years of ownership. When you buy a used car, the original owner absorbs the pain of its steep depreciation during its early years. You pay far less than you would have if you had purchased the car new. There may be more maintenance required on a used car that's out of warranty, and its financing may be a bit more expensive.
Frankfurt (Reuters) - From the point of view of Bundesbank President Jens Weidmann, the recent rise in government bond yields in the euro area does not currently have a major impact on the financing costs of companies, households and states.
There is no significant deterioration in the financing conditions to be seen, said Weidmann on Wednesday at the virtual press conference. "The financing conditions are still very favorable by historical standards." However, the monetary authorities should keep an eye on developments and carefully analyze the background.
How to Get the Best Deal on a Car
How to Get the Best Deal on a CarBuying a new car can be challenging. From deciding which car is best for you to knowing whether or not you're getting a good deal, the entire process can leave even the most prepared car shopper exhausted.
The yields on government bonds of the euro countries had recently climbed upwards. This had fueled concerns that borrowing costs could rise in the pandemic and slow down the hoped-for recovery. Basically, according to Weidmann, the European Central Bank has the tools to respond to the surge. The euro watchdogs are able to flexibly adjust the volumes of their billion dollar bond purchase program PEPP at any time. "It is precisely because of this high level of uncertainty in the crisis that we have designed the PEPP with greater flexibility than other programs in order to be able to react again and again to developments that are difficult to foresee, but which can also occur in the current situation."
Not every increase in financing costs is a problem in terms of monetary policy, said Weidmann. This applies, for example, if inflation expectations were to rise. "Then of course that would not be a development that we would counter if it were then reflected in the nominal interest rates."
BGH: VW must reimburse diesel plaintiffs Financing costs .
The compensation claims of diesel owners in the exhaust scandal against VW also include the additional costs for installment financing of the car. © Patrick Pleul / ZB / DPA The compensation claims of diesel owners in the exhaust scandal against VW also include the additional costs for installment financing of the car, decided by the Federal Court. concerned are basically to be placed as if they had never bought the vehicle, the Federal Court of Justice (BGH) in Karlsruhe ruled on Tuesday.