Cash for clunkers will get many people even more indebted

Top Cash for Clunkers Trade-Ins and New Cars

The Top Ten Cash for Clunkers Trade-Ins:
1. 1998 Ford Explorer
2. 1997 Ford Explorer
3. 1996 Ford Explorer
4. 1999 Ford Explorer
5. Jeep Grand Cherokee
6. Jeep Cherokee
7. 1995 Ford Explorer
8. 1994 Ford Explorer
9. 1997 Ford Windstar
10. 1999 Dodge Caravan

The Top Ten Cash for Clunkers New Cars:
1. Ford Focus
2. Honda Civic
3. Toyota Corolla
4. Toyota Prius
5. Ford Escape
6. Toyota Camry
7. Dodge Caliber
8. Hyundai Elantra
9. Honda Fit
10. Chevy Cobalt

Ford dominates one list while the Japanese the other.
 
Quote from Maverickz:

Buying a car on credit with a low to zero interest rate can help increase your credit rating. First doing this and paying the car off with every payment on time shows credit worthiness.

Second a very important key piece of credit data (that is often overlooked and not understood by most people) is debt to credit ratio. Buy a car on credit even if you can afford to pay cash. Put down the minimum down payment required. Pay down the principal to 50% of the original amount over the course of just a few months. This will cause the full amount of the car to show on your report as credit but half of the amount as debt improving D/C ratio. By getting an auto loan say for $30k you increased your total available credit line by $30k, but knocking the amount owed down to $15k your net D/C ratio increased and thus your overall credit score increases.

The same can be done with credit cards. Say you have only one CC with a $10k limit on it and you have it maxed out. This lowers your D/C ratio. You can get another CC or two and just put them in a drawer never to be used and increase your D/C ratio and thus your credit score.

I keep a close eye on my credit scores and manage my D/C ratio by opening and closing CC accounts as needed and always keeping one car (and only one car) on my credit rating at all times. This shows continual on time payments and that I have plenty of available credit in multiple revolving accounts....all in good standing.

It takes work to keep a consistent credit score 750+.
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How about NOT buying new on credit but a used 4 to 5 year old for 1/4 of the price using cash? and how about having ZERO balance at the end of each and every month on the 2 to 3 (max 4) cards you have?

YEA, it takes work to keep a consistent credit score of 820+. :D
 
Quote from Covertibility:

The Top Ten Cash for Clunkers Trade-Ins:
1. 1998 Ford Explorer
2. 1997 Ford Explorer
3. 1996 Ford Explorer
4. 1999 Ford Explorer
7. 1995 Ford Explorer
8. 1994 Ford Explorer
More...

LOL, the people trading these in are lucky they haven't caught on fire yet. They aren't nicknamed Ford Exploders for nothing.
 
Quote from saxon22:

How about NOT buying new on credit but a used 4 to 5 year old for 1/4 of the price using cash? and how about having ZERO balance at the end of each and every month on the 2 to 3 (max 4) cards you have?

YEA, it takes work to keep a consistent credit score of 820+. :D
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I buy new to 1 year old cars because I keep them for 10 years. I get a car and 5 years later my wife gets a car. So we get a car every 5 years but keep each one for 10. Buying a 5yr old car puts it at 15 before we get rid of it. Plus as I said paying cash never shows an account as "paid in full" status.

As far as CC's go I have 3 cards. One is a rewards card that puts cash back directly toward my mortgage. I use this card exclusively to pay my electric bill and Security system bill. It carries over zero balance from month to month. The second card is is also a cash back rewards card we use for groceries and discretionary spending and it too carries a zero balance over. The third I do keep a small balance on just to hold the account open and show a constantly revolving line of credit. With the low balance I keep I pay between $10 and $20 /month in interest. I don't consider this a lot and I could pay off the card at anytime.

What I said in the previous post was that if someone HAD to make a big CC purchase they could not pay off quickly, that having multiple CC's to show a higher available line of credit would be better than having only the one maxed out card.
 
compare foreign and domestic:
volvo
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Jeep 4.0L
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they took out engine oil before doing this, classic example domestic car are better for government sponsored program, faster to die. :D
 
Quote from number22:

they took out engine oil before doing this, classic example domestic car are better for government sponsored program, faster to die. :D
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But as previously mentioned in this thread, domestic cars = more foreign parts. I guess shitty foreign parts don't last very long.
 
Quote from drcha:

You guys are going off the deep end here. I simply meant to point out an alternative point of view. I sincerely apologize if I somehow offended anyone personally. I did not intend to.

OPM is for buying appreciating or income producing assets, not for buying depreciating toys. Lenders know the difference between good debt and bad. Car loans are the same as credit card debt. They detract from one's ability to borrow for more useful purposes, whether or not interest is charged.

Actually, yes, I am a millionaire. And I will keep on driving the car I have until it, too, is a clunker.
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agreed. i have never had a loan on a vehicle. the last one i bought was in 2006 and it cost >80k.

all my friends who tell me constantly how stupid i am for not leasing or financing shockingly have a much lower net worth than me. maybe there is something there.
 
Quote from number22:

compare foreign and domestic:
volvo
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Jeep 4.0L
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<object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/eOEqJIGnXRw&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/eOEqJIGnXRw&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object>

they took out engine oil before doing this, classic example domestic car are better for government sponsored program, faster to die. :D
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Wait a second, they needed 3 guys to do this. Hire one illegal pay him 50$ and he could disable 100 cars a day. Only in America
 
and I thought the US represents the people with a free will and free choice. As far as I can remember nobody forced you nor anyone else to load up on credit card debt and consume as if there is no tomorrow. This pain is 100% self inflicted. Its hypocritical to now point fingers while one of the American manifestations is to assume responsibility for ones own actions instead of blaming others.

The only other conclusion I can draw is that the average IQ in fact is a lot lower in the US than in other industrialized nations. Or is it a simple "greed component" that blurs peoples' minds and urges them to spend in order to keep up with the neighbor?

Quote from risktaker:

But that's what the US has become. A nation that encourages people to consume, consume, go into debt, etc, just so the corporate thieves can keep paying themselves bigger & bigger bonuses.
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still not done with your blame game? Why dont you question your own intelligence because you should probably reflect why you or your friends could not resist all those sweet temptations...


Quote from ByLoSellHi:

Yeah!

Woo Hooo!!!!!!

Americans having their working cars' engines filled with liquid glass and destroyed, a car that they owed no or little (relatively) money on, all so they can move on up to a much larger monthly payment, when the really bad economic times are yet to come!!!

Great plan, government, as usual!!!!!
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