Cash for Clunkers buyers regretful

The Cash for Clunkers buzz is starting to wear off and it seems that some buyers are having serious second thoughts about getting on that government-funded bandwagon

"Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."

edmunds.com



mod edit, to fix link

[edit on 7-9-2009 by DontTreadOnMe]

Indeed. This is why the Elite keeps winning. The masses really are stupid.



There's saying among luxury car fans, "if you can't afford it in cash, you can't afford it."

www.edmunds.com...=155907

This is a major 'duh!' moment. This cash for clunkers problems are the same kind that happened with ACORN (and Obama) pushing for home loans for those who couldn't afford the payments.

Now the repo man comes knocking on the door.
Ya' just knew it was going to happen.

reply to post by eldard

Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."

Well, no $hit...


Was part of the program to hold this information back at the 'acquiring' moment of this exchange..?




I think not - buyer beware never seemed more fitting...

Well DUH is all I have to say. Did these people think that they wouldnt have a payment?? Did they think the money they got for their "clunker" would cover their new Prius? NO! This is why I would never fall a scam, which is how I saw it, like this!~ People should have thought before they fell for the "You can get 4000" scam! If they couldnt afford a car payment then why did they get it? Think people before you react!

Just wait for it. The real time to buy a car will be when all of these slightly used but repossessed cars start showing up on the used car lots.

Never trust the government!

EVER.

Look I realize we have to build and buy new cars and houses to get the economy going again... but the timing for this project was just bad....

It hit right when more car owners than ever are defaulting on their loans. even this little burst of new homes sales is due the the tax rebate the government has going until Nov...

So what happens now? we only add to the numbers of people who cant keep making those payments. more cars being taken back more homes foreclosed upon. more jobs lost, unless your in the REPO business...

Of course TPTB claim there was nothing else to do.... well there was... what would have turned things around is if the Gov had used the Money to start a massive program of installing photoelectric and windmill generators on every home in this country... we could have cut our energy dependency by a third, create an entire new industry and put us well on the path to recovery.... now all we can do is wait for the next rash of bank closures and hope the FDIC really does have enough money to cover our losses...

[edit on 7-9-2009 by DaddyBare]

Which is precisely why I am saving to buy a newer vehicle. I did not want to be saddled with a car payment. While I could afford $200-$300 per month, I did not want to be.

About a year ago I was flipping through different AM stations and stopped on one of those financial advisors. Usually they are boring as all get out, but I stopped on this one and listened to what he had to say.

He said the best way to purchase a car is to figure out the monthly payment you can possibly afford and start paying it into a personal savings account. Be diligent and treat is as an actual bill. If you can afford $500/mo that is $6000/yr not counting the interest on the account. In five years $30,000 plus interest buy pretty much any car you would want and definitely a car that you would need. $400/mo would be $24,000. Best part is you can roll the total into a 30 or 60 day CD for extra money while shopping for your new car.

In other words it was a very educational lesson on how to make your money work for you instead of the bank making a car loan. He also added that the best part was that should you have a bad month in which you had to make a repair to your current car, you could pay for it without the worry of repossession of your new car.

He then added that once you have bought your new car in cash. Start the whole process over again. That way you have the cash for a new car again in 5 years and the trade in value of your now five year old car is a foundation towards your third new car five years after that.

It was indeed a very educational program. As for myself, I have modified it to pay cash for a decent used car that will keep me going until I can afford the five year plan. Of course, I do have a company car so I do not drive my personal car as often (store and friends and relatives) which makes my situation a bit better.

I do wonder how many people will be upset next April when they have to claim that $4500 on their taxes.

reply to post by eldard


I said this was going to happen a month ago

www.abovetopsecret.com...

*wow*

I was right about something. . . .

could someone tell my wife?

Has anyone researched the fact that the cash that one gets for the clunkers is now being set aside as "taxable income"?

I overheard that statement on a talk radio station a few days back. If you get taxed for your cash, and have a bigger payment. Good luck.

That will be the straw that breaks the camels back. Knowing you have to pay more in income tax for the money (taxpayers money) that you aquired from the gov't.

:bnghd:

reply to post by Ferris.Bueller.II


Darn you beat me. Wonder how that's working out for her??

Oh yeah heres' a linkty link for the taxable income.

www.businessinsider.com...

[edit on 7-9-2009 by havok]

Well, I watched all this "cash for clunkers" thing, and I saw a lot of very clean, nice looking used cars slated for the crusher, while Americans are enslaved by payments for the next 5 years or so, while their new "hybrid" will likely cost more on repairs than a normally aspirated car would, given the same circumstances. I drive a G-20 Chevy van, it's perfect for me and my family, we can all fit in there without rubbing shoulders. It has a V-8 engine, It has a lot of miles on her, but she gets really good mileage, better than some new cars do. Little cars get out of my way. I like this effect, if you have ever driven a large vehicle, you will know what I mean. Instead of trading for payments, I am saving up for a new engine, and better one, more horsepower and better fuel delivery system. For about $2000 I can have this....www.summitracing.com...

Why go into debt what you don't have to? This debt/credit mentality has to stop some day, we cannot go on writing checks to ourselves and expect to rise above water. Ban the Federal Reserve, ban the IRS, seize their assets, institute a consumer tax that will be paid upon a purchase of goods or services. Close all central banks, and fund all local banks. There are ways out of this, if people will just man up and do them.

Originally posted by FlyersFan
This is a major 'duh!' moment. This cash for clunkers problems are the same kind that happened with ACORN (and Obama) pushing for home loans for those who couldn't afford the payments.

Now the repo man comes knocking on the door.
Ya' just knew it was going to happen.

Just a question but...when you're home loan payment starts at 6% interest and you are in fact making the payments, why wouldn't a fair corporation just leave it at 6%? Why hike it to 10%?

The ARM payments weren't expected to jump more than 2 points but they did, and this because our Fed raised interest rates during a housing bubble to supposedly lower inflation which had yet to bother anyone.

It was all a ruse. When the economy climbed in the 90's during the Internet jump and was dependent upon venture capital to fund new entrepreneurs they did the same thing, inappropriately raise the interest rates to kill the boom.

Why? Was Greenspan senile? Is Bernie?

I think it was purposefully done to create the situation we are in and herald a one-world currency within three years.

Those homeowners with less than 700 credit (and by the way the FICO score of someone who has zero credit cards because they want to pay as they go is as low as someone who has high balances so it is not a fair system anyway) got sub-prime loans that they were told wouldn't leap higher than two points by the man with the suit.

They may have trusted wrongly, but they were also set up. I've used this analogy before, but being trusting and gullible is not a crime. It's a dangerous state to live your life in, but it isn't a crime. The person lying, the person deceiving, the person doing the robbing is the criminal.

And yet look at all the ats-ers who think things are different wtih medicare/medicaid/social security....

Cash for clunkers is exactly what this administration wanted though. Now MORE people will go broke, more people will have to rely on the government, more people will be screaming for Obama to help them.

The people in DC aren't stupid. They saw this coming.

reply to post by Tentickles


What does that have to do anything. No one forced these people to buy a car.How absurd.

reply to post by FlyersFan


I think that happened long before Obama came into office.