Tuesday, September 08, 2009

Clunker Regret

I don't know what their problem is, really. It'll all work out fine if they'd just keep saying the refrain: Debt is good. Debt will save us. Debt is good. Debt will save us...

Edmunds.com: "Buyers Feel Regret as C4C Final Tally is Released"

Yeah, the title's a bit loaded. But here's the part that intrigues me:

The new survey by CNW Purchase Path, of Bandon, Oregon, finds that of nearly 1,000 Cash for Clunkers participants, 17 percent say they have some or serious doubts that they should have made the new-vehicle acquisition.

"Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."


Obviously we have some folks out there who aren't minding the "green shoots" as well as they should be!

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— Posted by Michael @ 8:10 AM








5 Comments:
 

The other 83% will figure it out....eventually. Yikes

Blogger Sam Burton
, at 7:21 PM, September 08, 2009  
 

"This is like deja vu all over again." -Yogi Berra. Didn't we just do a similar, stupid, reckless (insert your favorite adjective here) lending practice with home mortgages? Apparently that was such a great plan that its worth repeating: Lure thousands of consumers to take on more debt and payments they cannot afford (in a recession with the highest unemployment numbers in decades), and approve more loans for people who will probably go belly up in a few months. Man, when will we learn? Repossession is same thing as foreclosure, people. If you can't make the payments, the banks will take your new (insert product here) away from you. Hope you enjoy your new refrigerator box... because that's going to be your new house if you keep it up.

Anonymous ExcelGeek
, at 6:24 AM, September 09, 2009  
 

Unbelievable. I take that back - nothing in the area of how people handle their personal finances surprises me anymore.

The fact that these folks are having regrets simply highlights their impulsiveness.

For most of these people, the repo man cometh.

Meanwhile my pre-teen kids will be paying for these taxpayer-subsidized cars long after they have gone to rest in your local Pick-A-Part junk yard.

My $0.02 (after taxes)

Len
Len Penzo dot Com

Anonymous Len Penzo
, at 8:26 PM, September 09, 2009  
 

Ok, 17% said they have regrets. meaning that 83% dont have regrets.

As Sam Burtun pointed out, perhaps that remaining 83% will also end up having regrets,just delayed, but, I think that would have been the case with these respective groups with or without the CARS program.Either you manage your money well, or you don't. I share the concern that Excelgeek raised; if that perhaps the mortgage mistake of relexing credit stds and lending money to people who would not qualify under more prudent practices has been repeated with the clunkers program. But,from what I gather, car shoppers with credit scores under 650 were getting turned down. So, perhaps the no money down no income verification silliness that was prevelent with so many mortage brokers ( too many perhaps?) has not been repeated with car dealers.

Anonymous Anonymous
, at 12:23 PM, September 12, 2009  
 

Great post,

loving your blog, I'll come back more often!

Keep up the great job,

Wilbur Woods

Anonymous Wilbur
, at 9:28 AM, September 13, 2009  
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