ReconRat Posted February 2, 2009 Report Share Posted February 2, 2009 Just when you thought things wouldn't get economically worse...It seems car dealers are folding up and going under, leaving buyers holding debts they shouldn't.How it happens; you trade in when still owing some over the trade-in value, and the dealer "handles it", or you buy a used car that has been subject to that "handled" trade-in. The dealer fails to clear the debt as they should (they make you pay for it, but don't follow through). So a new car buyer can get stuck with paying off the old car, and the buyer of the used car can wind up repo'd (wasn't a clear title).One fourth of all buyers are typically at risk.http://news.yahoo.com/s/ap/20090201/ap_on_bi_ge/dealer_defaults Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 (edited) No sympathy from me. What do you think happens to lenders when a private consumer declares bankruptcy? I know' date=' I'm a cold-hearted bastard.[/quote']yeah I know, but we and them can't all go around imploding... there won't be anything left... Somebody has to have done it right for the future. I'm thinking it all still goes back to the wrongful "reward for failure".edit: and I think I'll continue paying cash for everything... and then financing if I feel like it, on my own terms. Edited February 2, 2009 by ReconRat Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 btw, do you know what the historical response to a debtor used to be? The city would take the worse offender up to the top of the tallest town building, and drop them on their head. It's a traditional European thing, it didn't migrate here. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted February 2, 2009 Report Share Posted February 2, 2009 Not a bad idea... but you know there'd be guys on wall street always calculating the best way to stay in the #2 spot forever. Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 How the hell do you owe more than it's worth? Fuckin idiots Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 How the hell do you owe more than it's worth? Fuckin idiotsPretty easily... If you have a lease and go over your mileage you can wrap those extra costs into the purchase price for your new car. Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 Pretty easily... If you have a lease and go over your mileage you can wrap those extra costs into the purchase price for your new car.So the responsible thing to do would be to pay off your lease fees upfront and not add it into your new purchase loan. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 So the responsible thing to do would be to pay off your lease fees upfront and not add it into your new purchase loan.If you can afford to...many people can't. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 Again' date=' inability to be responsible for one's self. Also, there are a lot of people rolling in $40,000 Acuras that ought to be driving $20,000 Chevrolets. 7 year car loans are ridiculous. The first 3-4 years are all interest. That, combined with zero down purchases, is why everyone is 'upsidedown' in their 'investment.'[/quote']Agreed. I'm not defending it...just giving an example of how people get in over their heads. It's really easy to do with all the fees associated with leasing a car (don't lease!!!). Good point on the zero down...not a good idea. 7 yr car loans? I didn't even know they existed. My last 2 car loans have been 5.5 yrs which I think is too long. Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 Then they should drive a $3000 car and not a $30' date='000 car.[/quote']Exactly. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted February 2, 2009 Report Share Posted February 2, 2009 Then they should drive a $3000 car and not a $30' date='000 car.[/quote']But, if my neighbor has one, I have to have one. I can't have anyone thinking I'm not rollin' at least at well as the Jones's. Image is everything. </sarcasm off> Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 Hmmmm, when I traded in my Hummer I got more than what I owed. Funny how that happens Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 How the hell do you owe more than it's worth? Fuckin idiotsyeah, it's easy... zero down, no payments for 6 to 12 months, with a 6 to 7 year loan. Trade it in at 4 years and it's not worth what you owe. Particularly in the current economy, where the value of everything is falling, including the value of the currency. Even worse if the miles are high, the condition less than excellent, etc.Must agree that people often buy over their abilities to repay. Basic greed to own something they can't afford. On the other hand, I'm beginning to see a lot of bargains in used vehicles for sale. So I can't complain too much. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 Then they should drive a $3000 car and not a $30' date='000 car.[/quote']IDK if I would go that extreme. There is nothing wrong with financing a car if you put some cash down...the key is to make sure the amount you owe is always going to be less than what the vehicle is worth. This way if you can't afford the payments you can sell it and walk away debt free. Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 I find it hard to pay 30,000 for a car when houses sold for 20,000 when I was a teen...That doesn't make the future look too bright to me. It seems like being cautious is a good thing lately. Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 I'm a 'used car' guy. I don't purchase new. I just really hate the thought that as soon as I sign that loan I just lost 30% of my investment. Not wise' date=' IMO. I have zero issues with driving a 1996 Subaru station wagon that has 160,000 miles on it. I'll drive that car until the repair costs outweigh reasoning and then I'll pick up another 'beater' to run the wheels off of. I guess having everything the Jones have isn't an issue at my house. Not saying it didn't used to be. My conservative approach to finances didn't arrive easily.[/quote']I only buy used also, but not to that extreme. I'll have the dealer pick up a truck or SUV at the auction. Let the first owner take the depreciation. I can pick up a 2008 Yukon XL with a couple thousand miles on it for 25g's less than a new one Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 Leasing has it's upside. If I am the type of person that is comfortable with a constant car payment and like to switch up every couple years then leasing is probably my best option. (I am not that person' date=' btw.) I don't understand the people that take out a loan on a vehicle, pay it off and then trade it in. I know a few people that do that and it boggles my mind. [/quote']I switch cars like its underwear...seriously. I buy used though (new used...not 1985 used) and don't make stupid buys. When I bought my first car I put $1500 down and three cars later I haven't had to put any more money down (even after one was totaled). Sure, I've lost money in taxes and monthly payments are a little higher than a lease...but I don't have fees, or mileage limits, and I can sell it whenever I want. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 You guys post too fast...i can't keep up Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 I find it hard to pay $30' date='000 for a car that will be worth $20,000 in less than a year.[/quote']That too, creeps me out... and I think I'm finally going to let loose of my 20 year old jeep, and get one newer. Poor baby, needs a clutch and not worth it. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 I'm a 'used car' guy. I don't purchase new. I just really hate the thought that as soon as I sign that loan I just lost 30% of my investment. Not wise' date=' IMO. I have zero issues with driving a 1996 Subaru station wagon that has 160,000 miles on it. I'll drive that car until the repair costs outweigh reasoning and then I'll pick up another 'beater' to run the wheels off of. I guess having everything the Jones have isn't an issue at my house. Not saying it didn't used to be. My conservative approach to finances didn't arrive easily.[/quote']I just bought a VW Jetta a few months ago and the amount I owe is a little closer to the actual value than I would like. I had to pay a premium to get the diesel Jetta but I know I'm going to keep it for along time (only 80k miles should be good for 300k+) so I'm okay with what I owe on it. Quote Link to comment Share on other sites More sharing options...
SAMBUSA Posted February 2, 2009 Report Share Posted February 2, 2009 Leasing has it's upside. If I am the type of person that is comfortable with a constant car payment and like to switch up every couple years then leasing is probably my best option. (I am not that person' date=' btw.) I don't understand the people that take out a loan on a vehicle, pay it off and then trade it in. I know a few people that do that and it boggles my mind. [/quote']I do that, kinda. The plan is to replace every 4 years, so the one getting replaced would be around 8 years old. So it's been paid off for some time by the time it gets replaced. Only one care payment for 2 vehicles. Generally try to pay off loans early. Like the truck is an 06, it'll be paid off this year. As soon as it's paid off(couple months from now) I'll be buying another vehicle Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 Sure' date=' and you can do that comfortably. That is the point I'm trying to make. If you can afford it, then go for it. Many people do that. I go through motorcycles like I'm on a mission but I never lose money doing it. I don't always make the profit I'd like to but I'm not in it to make money. I like buying and selling bikes. I just didn't like doing it for a living.[/quote']I go through motorcycles like underwear too...haha. I'm 24 and have had 7 different cars and 9 motorcycles/dirt bikes. Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 That too, creeps me out... and I think I'm finally going to let loose of my 20 year old jeep, and get one newer. Poor baby, needs a clutch and not worth it.Do tell me more about the jeep... YJ? XJ? Quote Link to comment Share on other sites More sharing options...
ReconRat Posted February 2, 2009 Author Report Share Posted February 2, 2009 (edited) Why is it not worth it? If you put a clutch in it how much longer can you drive it? A couple years?? That's worth a $500-700 clutch to me. It would only take two to three payments to have that beat. Fuck that shit.True, I'm known for buying 1000 buck vehicles and driving them for as long as I can, 5-10 years or more... I would want to do the clutch myself, and kinda just not in the mood. There are lots of Jeeps for sale at low prices right now. My experience is that trying to get past 20 years old is a mistake. Actually, 18 years is a better limit. Too many things need fixed after that. Edited February 2, 2009 by ReconRat Quote Link to comment Share on other sites More sharing options...
wolfman Posted February 2, 2009 Report Share Posted February 2, 2009 A good friend of mine bought a 2000 Jetta TDI new and now has over 200' date='000 miles on it. It has been a fantastic car. I looked into picking up one and nobody lets them go cheap. If you didn't pay Blue Book you did a good job. They don't come cheap.[/quote']I searched for a couple months, paid close to KBB and still had to drive to Indy to buy it...yeah they don't come cheap or easy. I sort of screwed up b/c I thought it had a 100k mile timing belt instead of an 80k. I bought it with 79k and spent my first month buying several hundred in tools and parts to change the Tbelt. Tell your buddy I have all the tools if he needs his done... Quote Link to comment Share on other sites More sharing options...
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