Cash for clunkers will get many people even more indebted
- Thread starter crgarcia
- Start date
It's his ride:
Anyone taking equity out of their house to put into the stock market is neither bright nor "savvy." They're even bigger idiots than those who pay for a car in full with excess cash.
Someone has $48,000 in cash to lay down on a new car and you, Mr. Risk Aversion, say the best bet is to pay it in full.
If so, you're proof that people need to become financially educated because all your degree proves is that you're capable of completing a task without having anything of value to show for it afterwards.
Anyone out there who can fog a mirror can open a passbook savings account earning 2% compounded annually, most likely with no fees until the balance drops below $5k.
Next, and this is key because it's just a friggin' car, is to find a dealer willing to sell you one and finance it with a zero percent interest loan.
Let's say the dealer says, sure, but you have to put 25% down and pay it off in 3 years.
No problem. $12K to the dealer and the remaining $36K in the bank. Then, once a month you withdraw the monthly payment of $1K and pay off the loan.
Guess what?
At the end of that three years you will still have $1,082 left in the account, somewhat less if you had to pay an account fee for the last 5 months of the loan.
Yeah, they took on a whole lot of risk there...
Maybe 20 years ago it worked like that, but not anymore.
With all the rebates and incentives, you can often get a zero percent loan at the same price as cash in full provided you're willing to put down 25-40% of the price of the car.
I've used www.autobytel.com several times, but there are other similar services out there.
I remember Bush gave a tax break for business that would buy trucks over 6000lbs. Kept his buddies at Exxon happy.
There you go again, putting someone down. Typical Landis, "you have no clue" "do you even trade" Your so dumb and I know everything.
Yet I sit in my apartment all alone.
Good credit makes no difference anymore. Failure is rewarded. People who play it safe, and do everything right are being treated like they have defaulted.
Go take your 750 credit score and apply for a credit card. They will want pay stubs tax and bank records, and you will be lucky if you get 5k credit line at 16.00%
The days of having great credit and making it work for you is over for now. I had a BofA credit card for 28 years with a 35k credit line at 8.99%. I had never been late and kept the balance low. My credit to balance ratio on all credit was kept near 80% available credit.
I have owned 3 homes in my life, and at least 8 cars. I have credit history 30 years long. All paid as agreed. BofA sent me a notice and said they were cutting that credit line and raising the rate to 18.00% the reason economic conditions. I thought I better check my credit something must be wrong. 778 with Equifax. I am being treated like a dead beat and did nothing wrong.
I know I am subsidizing all the banks mistakes, so I missed a payment on purpose, then I got a call from them and I told them due to economic conditions and the uncertain state of the economy I must conserve my cash.
They lowered the rate to 5.99% but did not raise the limit. So failure was rewarded.
The last new car I purchased some years ago now I remember purchasing for $7000 less than the sticker cost anyway. A good used car I purchased within the last year was approximately 30% off their listed price.
This whole cash for clunkers fiasco just reaffirms what I've known for quite awhile. The vast majority pay sticker price for their car, not understanding that most dealers already account for a good deal of haggling in their price. When times get real lean (ala the past year), they do just about anything to get a sale.
This whole cash for clunkers fiasco just reaffirms what I've known for quite awhile. The vast majority pay sticker price for their car, not understanding that most dealers already account for a good deal of haggling in their price. When times get real lean (ala the past year), they do just about anything to get a sale.