Quote:
Originally Posted by garagelogic
I can't recall where I ever said that financing was a bad thing or that, in some cases, might be required. What we were talking about was long-term (60 months plus) for a car simply for the sake of keeping the monthly payment low.
I have no issue with anyone using credit, but I think too many people go into buying something with little or no thought to the long-term consequences of what they would do if their current financial conditions changed during the term of the loan. When that happens, and if those same people are unable to meet their financial obligations, then it becomes an issue for us all.
If they can't pay for the car, that means the car gets repossesed, When that happens, the institution that financed the vehicle will have a cost associated with trying to reclaim the car and auction it off (for much less than the value of the car, let alone the loan amount). The bank now has a loss on it's books that it now has to make up. They do this by raising the customers cost of doing business with them. If the costs are too high, customers leave. This could bring the value of stock down for owners and without the customers, the bank no longer needs as many employees so they hve to lay people off. When they lay people off, some of them may no longer be able to meet their financial obligations because they were already living check-to-check prior to losing their job. See how this works.
I'm not telling anyone not to finance, I'm saying they need to think things out thoroughly before they pull the trigger on some long-term financing deal for a want like a new sportscar.
Based on your last statement, am I to believe you are happy living in our current economy? I think if you are, you're in the minority in this country.
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This will be my last reply to you. Thanks again for economics 101. You know I think this forum is not the place that will ever make a difference to the outcome of our economy. And if you think from my last statement that I enjoy the situation we are in with this economy then again you misread. You think that you have all the answers for everyone else, fine keep being diluted. No one came for your councel, and I am sure no one came here to be lectured by you. You are judging without knowing, if someone wants a 60 month finance on there new car, it is up to them and the creditor. Not you. And if you think that the only factor to our economic crisis is people chewing off more than they can chew, you are highly mistaken. I'm sorry everything doesn't fit into your perfect little world, but until you are living in someone elses shoes, you have no right to tell them what to do. Finances are personal! Your idea of what things should be like is a perfect world scenario, not reality. And I am sorry if you think that hard working people and businesses should not be given the same chances to get ahead instead of saving all there pennies hoping one day before they die they'll be able to kick back in there lazyboy and watch the poop tube in there own damn house. Your ideals don't go there. Someone who takes out more than they can afford, there are many parties at fault when this happens, not just the person who took the loan. What about the creditors who give the loan, what about the government that lets the creditors do this. The only thing I find myself agreeing with you about is the responsibility of everyones self. Yes we need to make wiser descisions, but do I think that people should not have the oppurtunity to make mistakes. No I don't. It's like your kid asking for the keys. You give them the keys, you give them the chance, and if they mess up, next time they don't get the keys. Until someone burdens others with their choices it is none of our damn business what they do or how they do it. Sorry but my business IS NOT yours!
Peace out!