Guess who's among the happiest when the FED announced a 50 basis cut on interest rates?

*BIG FAT GRIN*

I am now one step closer to THE VOLKSWAGEN GOLF GTI!

Well i'm not expecting prices of cars to drop of course

But the more than expected FED rate cut does mean that interest rates for loaning big ticket items such as cars – flash picture again –hehe, is likely to take the cue and come down as well.

So this morning, I did what every good employee would do when their boss is not around. Looked through the classified ads and made a few calls.

And when I asked if they knew interest rates are going to come down, I was kindly informed that interest rates are not likely going to come down at all.

Unconvinced, I began looking through the papers and calling about another 10 more car dealers both authorised dealers and parallel importers.

Same story. Interest rates are going to stay the same and in fact, more likely to go north than south.

I feel cheated.

I mean the singapore market ended up the day the the cut was announced. Banks like UOB and OCBC were among the biggest gainers. A friend who already made money on the market on DBS even complained to me that he should have hold on to it longer.

But it doesn't mean that the lower rates will translate to a lower cost of borrowing for lenders like your truly. One kind soul even advised me to look more to currency movements.

I'm now upset I didn't buy any of these bank shares.

At least it would have been some consolation to me.

But hey, if you've got any news about car loan interest rates coming down, remember log on to investorcentral.blogspot.com to tell me about it.

Ashley

Labels: Federal Reserve, interest rate, volkswagen, volkswagen golf GTI