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Discussion Starter · #1 ·
I went shopping the other day and noticed big spikes in some products. Almost 40% increases since this time last year. It got me wondering if it might be in my best interest to make big purchases now.

I had some issues with this inflation stuff once before, I was going to buy a product from the states but I put it off, that's when the dollar dropped and what would have been 800 dollars turned to 1,200. Which didn't really make sense cause our dollar didn't even drop that much.

Anyways my computer is around 5 years old, my vehicle is 10 years and I was also going to finish my basement. All this stuff will need to be done eventually but not right now. I can probably get another 2 years out of my computer for example.

I priced out a Jeep Wrangler and for almost the exact same build it's already about 8K more than what I bought mine for.

I have the cash to purchase the items that's not an issue. I just usually try to make only one big purchase a year and spread them out. I'm wondering what the community thinks? Should I buy the things now that Ill need to replace in 1-3 years so I have reliable product for the next 7-15 years or should I not worry about possible inflation because it probably won't happen and keep spreading out the purchases.



Thanks
 

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I went shopping the other day and noticed big spikes in some products. Almost 40% increases since this time last year. It got me wondering if it might be in my best interest to make big purchases now.

I had some issues with this inflation stuff once before, I was going to buy a product from the states but I put it off, that's when the dollar dropped and what would have been 800 dollars turned to 1,200. Which didn't really make sense cause our dollar didn't even drop that much.

Anyways my computer is around 5 years old, my vehicle is 10 years and I was also going to finish my basement. All this stuff will need to be done eventually but not right now. I can probably get another 2 years out of my computer for example.

I priced out a Jeep Wrangler and for almost the exact same build it's already about 8K more than what I bought mine for.

I have the cash to purchase the items that's not an issue. I just usually try to make only one big purchase a year and spread them out. I'm wondering what the community thinks? Should I buy the things now that Ill need to replace in 1-3 years so I have reliable product for the next 7-15 years or should I not worry about possible inflation because it probably won't happen and keep spreading out the purchases.



Thanks
Due to temporary supply chain issues, they're not discounting a lot of product.
Cars and appliances are biggies here.
Delivery timelines for many major appliances are months out.
 

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We had trouble getting the fridge replacement that we needed and the unit that we wanted in late Sept. Not certain how it is now. Definitely supply chain issues. We were fortunate, shopped four appliance stores. Nada. Other than brands that we did not want. Came home, checked Best Buy's website and they had what we wanted. Went to the store immediately to arrange purchase delivery. Extremely pleased with the process.

I would not buy a computer until you actually need an upgrade.. The components are very much commodity items. Prices go up and down. Not certain if the chip supply issue is impacting integrators. Last Sept when we looked prices seemed quite high-as they do now.

Started to look at SUV's. On hold for now. No rush to buy....especially if it turns out to be a sellers market.
 

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Discussion Starter · #4 ·
Okay, so you think prices are high because of the supply chain? So when COVID goes away all the inflated prices will drop back down?

You don't see it as a red flag of coming inflation in other products like Computers or Vehicles.
 

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Okay, so you think prices are high because of the supply chain? So when COVID goes away all the inflated prices will drop back down?

You don't see it as a red flag of coming inflation in other products like Computers or Vehicles.
In general supply chain issues have resulted in high prices. Whether it will pass quickly or slowly will likely vary for different products. Are you specifically interested in computers and vehicles? If so the other thing to keep in mind is technological advancement. Computers get better every year. Some companies have stretched product life during COVID and held off introducing new models. Once things stabilize they will resume new model intros which will result in discounted older models.
 

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We did NOT find appliance prices higher than normal despite the supply chain issue that we were told that some manufacturers have. We actually expected to spend more than we did.

There was product available. Just not the brand or model that we wanted. The issue for us was delivery....we needed it now now in two months.
 

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We did NOT find appliance prices higher than normal despite the supply chain issue that we were told that some manufacturers have. We actually expected to spend more than we did.

There was product available. Just not the brand or model that we wanted. The issue for us was delivery....we needed it now now in two months.
Experienced same situation. Sub zero and Miele just not available.
 

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Discussion Starter · #8 ·
Ya I'm specifically concerned with computers, vehicles and reno supplies for the basement including a fire place and TV. As I will be buying all these things in the next 2-3 yrs

I was just wondering if people think the purchasing power of our Canadian dollar might dip in the next 3 years whether it be devalue in our currency or inflation.
I know anything is possible and no one can guess the future. It just raised my eye brows when I went to the store and most the stuff is more expensive than it was. But that could all just be the supply chain as mentioned.
 

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I think that it would depend on the product, the business environment, and the type of retail outlet.

Every time I go past the TV's in Costco I see much better product with more features at a much, much lower cost than I paid for my 40 inch Samsung years ago or the 65 inch Samsung that we purchased three years ago. Same for a few other products.

I really do not know. One thing for certain is that I would not prematurely buy product for this reason at the moment. There is just not enough evidence of a huge inflationary spike in prices or a de value of CAD vis a vis other currencies. Demand and supply curves may be out of equilibrium for any product at any time but unless there is long term scarcity it quickly get rectified by the market.
 

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We could also get deflation. There is no way to predict this kind of thing.

Personally I think deflation is just as likely as inflation.
 

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We were going to build a four season canopy over our hot tub this summer, but lumber prices have gone insane.

So unless I can find one that someone wants torn down and removed, our canopy is going to be put off until lumber prices get back to some form of normality, once this COVD driven nesting at home ends.
 

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We built a deck and fence last year and were looking to finish the fence on the side property as the neighbour hadn't budgeted for it last year. Based on current prices I am guessing the fence materials to be significantly higher than last year.
 

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I just found some 10' long 2x8s under the snow over on the back corner of my deck (left by previous owners - I just bought the house this winter) -- Looks like I struck gold!! lol
 

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My SIL is in the business. Suppliers are increasing prices before the previous price increases have come into effect.
 

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When you guys are talking about supply chain issues are you talking about the suez canal issue that blocked shipment for a week or are you talking about covid in general?
 

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Okay, so you think prices are high because of the supply chain? So when COVID goes away all the inflated prices will drop back down?

You don't see it as a red flag of coming inflation in other products like Computers or Vehicles.
Nope, law of supply and demand.
When you cut supply, but maintain (or increase) demand, prices spike.

Lots of things could happen, but I think shocks to supply/demand will at least short term behave according to the supply/demand curve.
 

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Ya I'm specifically concerned with computers, vehicles and reno supplies for the basement including a fire place and TV. As I will be buying all these things in the next 2-3 yrs

I was just wondering if people think the purchasing power of our Canadian dollar might dip in the next 3 years whether it be devalue in our currency or inflation.
I know anything is possible and no one can guess the future. It just raised my eye brows when I went to the store and most the stuff is more expensive than it was. But that could all just be the supply chain as mentioned.
I would wait unless you need them now. Think about the extra 2-3 depreciation you will be throwing out because you are buying earlier.
Computers - there was a huge blip because of the all the people and kids going on line for work and school. Unless you really need it, this will come down. 2-3 depreciation on a computer is huge.
Vehicles - Used vehicles seemed to have gone up because people were hanging on to them. Depending on the type, they will come down too. We plan to pick up one in the next 2-3 years when our oldest starts driving. There are more used vehicles coming on the market right now. I see this going back to pre covid prices
Reno Supplies - we did just fully reno our condo, it was a tad more expensive, and the cheap appliances were out of stock. The sales people said it was a supply chain issue. Our reno was expensive because all of the labourers were really busy due to 3 freak hail storms taking out large parts of the city last year.
Fire place - don't know, but there just had a really nice electric fireplace at Costco. My friend bought it said, it was the same price as previous years, but got because they were hanging out in the basement more.
TV - there are cheap TV's all the time. Wait until you need it and check for a good sale on Black Friday.

I generally think if you have a couple of years to wait things outs, the prices will level.
 

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Discussion Starter · #18 ·
Okay sounds good. Might do my renos this year, Ill wait for the computer and Truck.
I need to spend less time on silver forums. They think printing all this cash is going to create inflation and we are just starting to see it.
 

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I happen to think they won't - we'll get a stream of media stories about "temporary" supply chain issues that become "increased complexity of manufacturing and trade in a post-pandemic world" , fun distracting stuck-ship stories, and start hearing about pandemic recovery related expenses that those dastardly "small businesses" have and the need to recoup losses and increase prices - until 1-2 years out where the new prices stick and are permanent.

But even if prices never go back down and we get 10% more inflation for the next couple years, I think Plugging's point about the depreciating value of your purchases is the key.

There is no way that price inflation is going to be faster than the depreciation of your computer, basement & truck if you are going out and prematurely replacing it when you would have waited 2 more years. If there is inflation that may seem like a win right away, but that's only because you're at the front end of the transaction. When 2031 rolls around and now you need to buy a new truck and fork over $50k, when in your original plan you wouldn't have done that until 2033, that's where you lose.
 

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Doesn't make sense to me at all.

If I anticipate inflation I want to invest in assets that will get inflated. Those appreciating asset could later be leveraged to buy things if/when I actually need them..

People go great lengths to rationalize bad financial decisions to themselves.
 
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