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RE: To Hell With Repossession, No More Car Notes
I remember seeing a clip of John Oliver saying that sub prime lending has started again with car loans. That was at least a year ago, maybe longer. People just want a car, but lenders are giving them a sense that they can get bigger and better cars than they can afford in the long-term. The lenders don't care because they sell those loans to someone else and it's not their problem any more.
There's a bigger picture here than just losing a car and getting a new one. There are people who are trying to extract your wealth from you from every conceivable angle and we must all demand a better deal for ourselves. We deserve better!
This is so true. Very few people know of this, and hence spend the rest of their lives paying for loans they could have easily avoided. For example, you can buy a brand spanking new mid-size sedan for $25,000. Let's say you buy this sedan on a loan, to be repaid monthly over a span of 5 years, when you extrapolate that figure over 60 months, you'd pay $26,921.20 for that $25,000 car. The fact is, the first year you have a this new car, it loses 22 percent of its value. At the full 5 years? You're looking at a 55 percent loss on average. That means that $25,000 sedan that you paid $27,000 for, plus tax and associated fees, is worth maybe $11,500 on a good day. This shows you these people are out to manipulate you, and not to help you. Be wise, live within your means.
@stellastella What I hate too is that they make cars so expensive when they are cheap to make. It may cost $15,000 to build a $25,000 car. But they sell it to us for outrageous prices knowing most people can't afford it. So we're lured into debt and like you said we end up paying much more for the car than we should.
Yea it's not a good thing as far as responsibility goes. They are literally enabling people to not be responsible. Like I was. But I made my own decision and as I stated in another post it was surely my fault.
True we have to stop being pimped by the powers that be.