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Thats exactly what my uncle said this evening in a conversation we were having over this earlier.
Its foolishness isnt it?
Quote:
Originally Posted by Egobop
How long before this turns out to be like the mortgages? People running out to buy a new car because they are getting $3,000 to $4,500 off of the cost of a new car? I wonder if they will keep statistics of the amount of people that get into the clunker deal only to have their car repossessed within the next couple of years.
I can see people whom were already in the market for a brand new vehicle making out from the clunker deal. One thing I do not understand is why someone whom is driving a late 90's or early 00's vehicle whom was not in the market to buy a new car to suddenly run out and do this deal. They will still have to pay a car payment each month and the car insurance cost will be more since they will need full coverage. How many people doing this are adding more debt to debt they already have? I just hope that the people taking part in this deal are thinking it through before doing it.
Keep in mind, this isn't like it was a couple years ago.
Finance companies are much tighter these days. If you really shouldn't be buying a new car, they probably aren't going to lend the money.
Actually, it is the other way around. I have bad credit, and a job that pays less than $20,000 a year. Still, I got approved to buy a new Honda as long as it was $30,000 or less from Capitol One. This is just plain crazy, there is going to be tons of people defaulting on their car loans within a few months.
Actually, it is the other way around. I have bad credit, and a job that pays less than $20,000 a year. Still, I got approved to buy a new Honda as long as it was $30,000 or less from Capitol One. This is just plain crazy, there is going to be tons of people defaulting on their car loans within a few months.
Cap 1 approves pretty much anyone. Most reputable dealers won't take a Cap 1 draft though.
Cap 1 approves pretty much anyone. Most reputable dealers won't take a Cap 1 draft though.
It was for a specific Honda dealer. I called them up with the reference number and they verified all I needed to do is bring my license and insurance, and I could get drive away with a new car. I am a little smarter than that though because I could not even begin to afford the payments, and the higher insurance with a $9.50/ hour job.
My son used to work for a used car dealer and he said people on welfare were coming in trying to buy a car on time. At some point a judge ruled that welfare is income and they got their car. Now the question is why would anyone ever want to go off welfare, Section 8 housing and food stamps?
It was for a specific Honda dealer. I called them up with the reference number and they verified all I needed to do is bring my license and insurance, and I could get drive away with a new car. I am a little smarter than that though because I could not even begin to afford the payments, and the higher insurance with a $9.50/ hour job.
Like I said, Cap 1 approves anybody.
If the dealer is willing to deal with their BS and pay the fee, then they will approve them. They are basically one step above Drivetime.
I don't want to start a fight but I want to ask you this:
What do you think will happen to auto sales when the CFC money runs out or the program time terminates?
I personally think the current sales are just an artificial blip and sales will continue to tank later.
What might happen is what used to happen to Sears. People would go in and buy a major appliance at full price and then see the same item go on sale 2 weeks later so they wouldn't buy anything unless it was on sale. When the deals end on cars people may just not buy anything.
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