I don't think your theories are based on facts. Who exactly has been bailed out? Student loans haven't been forgiven and based on what you put into social security is what you get out although those who collect end up with more than what they put in. Those that can't afford the cars will go bankrupt and that's factored into the interest rate those people pay. Those who are good with credit get good rates, those who can't don't get it. I'm just somewhat bewildered about theoretical bailouts that haven't happened.
Lots of people struggle to meet the payments. But that doesn't mean they get repossessed. If there's some down payment, then it's like a $750+ payment a month based on maybe getting a good deal at 70k, 10k down and low interest rates with a 7 year amortization. So if your guy is working 15 hours a day and making 4 dollars extra per hour, works out to about $300 a week. After taxes, yeah, that should cover him as long as the hours stay that way. Also while it seems like everyone is buying a new car, there's more than twice as many used cars sold per year as new cars. Probably just a matter of perception, the new cars stand out more than the old ones so it looks like there's lots more new ones that there really are. Plus when the styling doesn't really change for 3-4 years, how can you really tell if it's new that year or 2-3 years old?
It’s fascinating what people believe sometimes.
You know, my grandparents were from the depression era generation. They always paid cash for their cars and they were not wealthy. Grandpa was a car mechanic all his life. They were VERY frugal and always steered clear of any debt. I think its because they were chastened by watching so many of their friends suffer greatly in the 1930's when there was so much economic pain. Your idea of making money with the funds you don't spend on the car at 0% has a lot of merit. But I suspect my grandparents were of the mindset that if they paid cash, they would not the worry about the temptation to spend that money on something else. AND, if they found themselves in a financial pinch, they would not have to worry about any car payments. They would buy a new car every 10 years after saving up for it. (they did this with everything the purchased). Another consideration is that back then (50 years ago), Amercian cars could be ordered with far more options A-La-Cart and they had lots of deletion choices we no longer have (thanks Honda). You did not have to take options you did not want to get the ones you did back then. That might explain at least in part why cars cost so much today adjusted for inflation. His 1969 Impala was ordered with a V8, Automatic, and NOTHING else!! And perhaps the most impressive thing of all is not just that they were financially responsible and conservative when making a car purchase, but how in the heck they kept cars for 10 years running on the ancient (by today's standards) motor oil tech, I will never know. I recall peering into one of their cars as a child and the sludge was so bad, it looked like someone was mixing brownies down in there. And he changed the oil religiously!! So a ten year old car back then was OLD!!
I had a lotta problems with alcohol for the 1st half of my life. When I finally cleaned up, I felt it was too late for me; I could never amount to much and could certainly never buy my own home. Through a lot of work and even more luck I have paid off my home in a great part of town. It is a great feeling. I am one of the lucky ones, for sure. And I know it.
