Each day I hear reports which lead me to believe this statement is false.
But after I consider historical trends over the last 100 years, I'm seeing more validity to it.
Car payments being missed more ...
- Thread starter odie
- Start date
But after I consider historical trends over the last 100 years, I'm seeing more validity to it.
That's always true because those are the vehicles that get repossessed. It seems to me the bad guys are the lenders who approve the loans in the 1st place.
Personal finance needs to be taught in schools to give people a fighting chance. Oh yeah, and arithmetic...
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I'm sure that's true, but there's nothing wrong with having a nice car, or any purchase, if you can afford it.
Money is a tool; use it wisely and you drive the nail, use it wrong and you smash your thumb.
I know a lotta co-workers who made a pretty penny working but now have to leave the area because they lived too large. Stupid, IMO. You ain't gonna work forever. The gravy train always comes to the last stop.
slo town
$200 Site Donor 2026
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Elkins45
Site Donor 2026
The lack of punishment for the 2008 financial crisis all but guaranteed it would happen again. Banks were reckless with their investor’s money by lending to unqualified people, and the architects of this financial malfeasance didn’t go to jail for it. In some cases the bad actors were rewarded (cough GM cough).
I saw this coming years ago when I saw shopping malls in WA closing and remaining ones going near empty of shoppers. Then tents started popping up along roads.
Vancouver here also historically has homeless population grow where they come from East for winter due to climate.
As far as people buying vehicles costing more than they need, they borrow more than what they can afford and not only cars, we have people on prod floor making less than half than me and buying phones costing 3 to 4 times of mine and they eat instant noodles for lunch. Common sense has left the building long ago.
Vancouver here also historically has homeless population grow where they come from East for winter due to climate.
As far as people buying vehicles costing more than they need, they borrow more than what they can afford and not only cars, we have people on prod floor making less than half than me and buying phones costing 3 to 4 times of mine and they eat instant noodles for lunch. Common sense has left the building long ago.
My younger days were used vehicles with a cardboard box in the trunk with fluids, parts, and tools. Decades ago kept two Toyotas for twelve years. Brought back memories so no more old vehicles. Have been overspending for 7/100 extended warranties and maintaining the vehicles as a gift to the next owner. Recent outback’s traded in provided a nice reduction in new vehicle ownership.
On another note during the anti inflation Ron R presidency money went to the rich through twenty one percent interest. Twenty one percent interest on a new Tercel. However we got lucky ? A home builder needed to move starter homes. They bought interest down to seventeen and a half. VA said no go. Builder took cash from purchase price and brought it down to fifteen and a half. We are still in the starter home.
Maybe pay wages like Ford’s five dollars a day. Maybe freeze interest at something like two percent. And maybe fix the tax laws so Warren B pays more tax than his secretary and use the revenue to pay down the debt.
Then there are legitimate multimillionaires to billionaires, who have a fleet of exotic cars and no debt.
Some people live within their means, and some don't.
My wife just bought a brand new Jeep Compass, 2025, had 7 miles on it. $32k out the door including tax and reg. Not an enthusiast vehicle, but a nice crossover with all the options she wanted. So lots of choice under $50K out there.Average car price is $50K or something, yet you can buy a nice Camry, or Rav4, or Corolla Cross in low level trim (which still has almost everything) for low 30's.
If people stretch themselves out then when there hours get cut or someone in the household loses job they can't make their car payment (or electric bill, or buy meat).
Almost feels like a reset is coming. Can't stay Alice in Wonderland crazy forever.
American tastes and standards in vehicles is massively overrated, and until folks can do without their bloated overpriced half ton pickups, or learn how to get from point A to B with a moped like most SEA countries, things are not going to change.
Yes, I think you are right, I'm no expert, but broadly speaking, since the 1980's, it seems many governments have been allowing those with wealth to make most of the rules to increase their share...
This is GDP by sector in 2024
In the 70's manufacturing was 24+% of GDP, Finance, Insurance, and Real Estate (FIRE) sector was around 11-12%
My gut tells me, that a lot of the FIRE sector is like a tax on people that produce goods, build homes and infrastructure, and provide essential services, like healthcare and education.
For sure there needs to be banks to provide mortgages, and bigger banks to raise finances to back larger projects, and stock brokers for buying and selling stocks, but once it gets more complicated than that, I think its just skimming value off the work of people in the physical goods and services sectors.
Also the decline of unions from 30% of workers in the 1960's to 10% now, has meant the average joe is losing his leverage to get his share of increasing GDP per capita.
Most people over buy on the vehicle they have and don't need a new vehicle with payments. . They are already up side down by the time they get to their driveway.
My theory is that many of these people who overpaid for vehicles didn't care about the price because they never intended to pay their loans. Because that is how deadbeats think.
Wish I could say the same!
I’m not aware of any state where that can be done without penalty.
When you buy a car, your contract is with the company that loaned you the money.
Handing a car back over to that company, or to the dealer who likely didn’t give you the money, doesn’t dissolve the contract.
There will be consequences.
Your definitely still on the hook - but whether they can garnish wages is very dependent on the state. South Carolina they cannot garnish wages for consumer debt.
Either way your credit score would be bust.
That's not fair... How can I buy another car that I can't afford? Sheesh. People are lame.
