Auto Loan Defaults Newest Financial Meltdown

[MrX (Premo)]

Auto payment defaults doubled last year and are expected to get worse. It is another financial meltdown waiting to happen similar to the crisis in the home mortgage industry, according to one consumer group. A CBS 5 ConsumerWatch investigation has found consumers locked into cars they cannot afford.

cbs5.com - Auto Loan Defaults Newest Financial Meltdown



Now, Im sure this will stir the pot..lol.

While it may be true, the lady mentioned in the article and the video is not a victim. Who in their right mind goes to a BMW dealership to look, and ends up leasing a brand new M6 convertible knowing they only have a $2500/mo disability check coming in every month???? Not to mention who puts their entire retirement of $30,000 down on said lease? The dealership looks to have fudged the numbers......but still.


Discuss?

[White Buddah]

Just more idiots buying things they can't afford. If they are dumb enough to do it, they deserve everything coming to them.

[refi-rep]

Originally Posted by MrX

Auto payment defaults doubled last year and are expected to get worse. It is another financial meltdown waiting to happen similar to the crisis in the home mortgage industry, according to one consumer group. A CBS 5 ConsumerWatch investigation has found consumers locked into cars they cannot afford.

cbs5.com - Auto Loan Defaults Newest Financial Meltdown



Now, Im sure this will stir the pot..lol.

While it may be true, the lady mentioned in the article and the video is not a victim. Who in their right mind goes to a BMW dealership to look, and ends up leasing a brand new M6 convertible knowing they only have a $2500/mo disability check coming in every month???? Not to mention who puts their entire retirement of $30,000 down on said lease? The dealership looks to have fudged the numbers......but still.


Discuss?

I think things sometimes come up unexpectedly, I also do credit counseling and see somethings that are uncontrollable, however I do also see somethings that could have been avoided(30-40% of the time)

[Speed Racer]

When are people going to be held responsible for their own actions? The news is reporting that there's going to be a bail-out package today called "Project Lifeline". It will buy some time for people who are about to lose thier homes thru foreclosure while allowing lenders to arrange for more affordable lending terms. So let me see if I've got this straight..a bunch of people got really cheap interest rates and low house payments, while I played it safe and paid a higher interest rate and consequently had higher house payments. Now, they're going to get to refinance to get cheaper rates and will most likely end up with cheaper rates than I'm currently paying!

[Toxick]

Originally Posted by MrX

Auto payment defaults doubled last year and are expected to get worse.

This is why buying a car is soooo bad to do right now. It would be much smarter to rent your car until the market turns upwards. You can buy cheap, and then unload it when the sale value is at premium! If you can afford the investment you can fix it up before you sell it, and get a much better resale value.

Anyone who would buy a car right now, instead of renting one, is just an idiot.







I rent a Rolls Royce and park it by the beach. And every week the owner comes to wash it, shine the tires and fill it up with gas. You simply can't beat that.

[refi-rep]

Originally Posted by Speed Racer

When are people going to be held responsible for their own actions? The news is reporting that there's going to be a bail-out package today called "Project Lifeline". It will buy some time for people who are about to lose thier homes thru foreclosure while allowing lenders to arrange for more affordable lending terms. So let me see if I've got this straight..a bunch of people got really cheap interest rates and low house payments, while I played it safe and paid a higher interest rate and consequently had higher house payments. Now, they're going to get to refinance to get cheaper rates and will most likely end up with cheaper rates than I'm currently paying!

I get the offical speal this afternoon, will keep ya updated. Alot of people played it safe too which wasnt a bad thing to do. I seen this coming because of the job lay offs and such. Here comes the 65-70hr work weeks again

[MrX (Premo)]

Originally Posted by Toxick

This is why buying a car is soooo bad to do right now. It would be much smarter to rent your car until the market turns upwards. You can buy cheap, and then unload it when the sale value is at premium! If you can afford the investment you can fix it up before you sell it, and get a much better resale value.

Anyone who would buy a car right now, instead of renting one, is just an idiot.







I rent a Rolls Royce and park it by the beach. And every week the owner comes to wash it, shine the tires and fill it up with gas. You simply can't beat that.

[EmptyTimCup]

Originally Posted by White Buddah

Just more idiots buying things they can't afford. If they are dumb enough to do it, they deserve everything coming to them.

But But But ....... I want my Lexus, Acura, Escalade, or Benz now :


I don't want to wait ....... They get whatever they bring on themselves

[dave1959]

I've seen this coming for years........I'm in the auto industry and I see the madness everyday.

[somdrenter]

Originally Posted by Speed Racer

When are people going to be held responsible for their own actions?

Looks like never. The current bailouts only pave the way for future ones. They’ll be no incentive to be fiscally conservative while the government foots the bill in some fashion.