Have you been to see a financial advisor lately? Studies have shown that in recent times, most people avoid going to see a financial advisor, perhaps because they are not willing to follow the kind of harshly realistic advice that financial professionals are often fond of dispensing. This is understandable, especially given the economic times that we are in – most people assume that a financial advisor will tell them to cut back on spending (which they do not want to do), and so they avoid seeing a financial advisor entirely.
This is, however, a pretty big misconception. The truth is that most financial advisors actually dispense advice that is the exact OPPOSITE of what people expect – that is, they tell people to loosen their purse strings, not tighten them, during a financial crisis.
The prices of both of these assets went down significantly during the peak of the recent financial recession, and people who were in a position to spend money on these things were able to wrangle some excellent bargains. The price of cars, for example, went down drastically because banks were seizing the vehicles of people who could not afford to pay their car note, and then these same repossessed cars were being placed on the auction block for the public’s benefit.
This sudden spike in car repo activity meant that a vast amount of vehicles were being put up for auction every day, which meant that the supply was starting to exceed the demand. This, of course, had the natural effect of reducing the prices of cars all around. The repo cars guide mentions that this is just one example of why it might be smarter to open your wallet during recessions, rather than shut it tightly. Visit a financial professional today to see what you could be missing out on.