– I saw these cars here for the first time in the Fast and Furious films, when Paul Walker, who is now dead, drove around in them. Ona-Buen tells about his childhood dream from the driver’s seat of his Nissan GT-R while he drives news from Lagunen to central Bergen. It is a canary yellow 2010 model, which cost around 600,000 with a destroyed gearbox. A normal evening trip in this often costs one thousand Swedish kroner, he says. Here Ona-Buen drives in his Nissan GT-R. Car sales in Norway are now on the way down, according to the registration register of the Road Traffic Information Council. Photo: Simon Skjelvik Brandseth / news – I have no count of how much I have laid out for him. It is scary. – I would rather not know that either, for my own part. Then I think I wouldn’t feel so good about myself. There is no public overview of how many people have high car loans in Norway. But a pointer is the number of cars that have been forcibly sold. This increased by 130 per cent in the first half of 2023, compared with the same period last year. The bailiff in Bergen believes the increase is connected to the fact that the interest rate has become more expensive. Ona-Buen meets her friends at a car meet at Skoltegrunnskaien in Bergen. Photo: Simon Skjelvik Brandseth / news If Norges Bank increases it again on Thursday morning, it will probably be more expensive for those who have loans. This is because the policy interest rate usually affects how much the banks have to lend money to ordinary people. When the key interest rate goes up, those who lend have to pay more. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher interest rate means increased expenses if you have a mortgage 2021 2022 2023 2024 2025 2026 Forecast Norges bank Several struggle to pay off the loan The public prosecutor in Bergen, Lillian Borge Bersaas, has also noticed that the number of people in detention is increasing markedly, especially among young men. Lillian Borge Bersaas is the Public Prosecutor in Bergen. Photo: Tony Ågotnes / news – Many people have a very close relationship with their car. Especially those who have bought these expensive cars. It is a status symbol for many. It is a way to show oneself in one’s environment, she says to news. – Then there are many people who have saved money to buy them, and have finally managed to do it and get that loan. Then they are suddenly taken away again. Ona-Buen has taken out a car loan of 220,000, and thinks it is fine to pay it off with the equity he has. But he has several friends who have higher debts, and knows some “who buy cars so expensive that they can’t afford to drive them”. – It probably has a lot to do with the fact that they thought they could afford better, and that it was going to go better than it actually did. – I thought it was almost free. Trond Døskeland is a Professor at the Norwegian School of Business and does research on, among other things, personal finance. He believes that the interest rates we see now may be “the new normal”. – I think that the interest rate will be more expensive, and that more people will have problems, he says to news. – The generation that is young now, they have grown up in a time where interest rates have been very low. So they probably thought it was almost free to borrow. Døskeland is Professor of Economics and Administration at NHH. Døskeland believes that several young people took this as a starting point when they considered buying a car, and expected the “sunshine days” to continue. He believes that we should plan for the interest rate to be roughly the same as today, or somewhat higher, for quite some time to come. – It is also bound to shame that one is unable to pay back the loan. But if you let shame run wild, you often get the best solution by tackling the problem early. – Then it can also be said that it is not a human right to buy an expensive car as a young person. Such an expensive experience can be good for later in life, because you see that you have to scavenge for sustenance. Interest calculator The calculator uses the formula for annuity loans to calculate your monthly costs. Nominal interest is used here. This means that there will be an additional transaction fee which will vary from bank to bank. Today’s interest rate is taken from DNB’s mortgage interest rate for young people, and different banks will have different interest rates. The figures given here will therefore be approximate for you. Monthly expenses are interest and repayments combined. Read more about sources and reservations here. See how much you have to pay if the interest rate increases.
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Experts believe it will be the new normal – news Vestland
