Posted on 07/31/2009 10:06:05 AM PDT by drangundsturm
Was watching morning call and the ceo of an auto company said that the credit scores of the average person taking advantage of "cash for clunkers" was over 700, far higher than the average car buyer walking in off the street in normal times.
This likely indicates that upper income individuals are mainly getting the $1 billion handout from the government. Another great example of "unintended consequences". Low income and out of work individuals won't qualify for financing, but wealthier individuals will, or will have cash available, to take quick advantage of the program.
I’m in the same position-why take on more personal debt?
Period.
Either a lot of dealers are going to lose a bundle or taxpayers are going to have to cough up a whole lot more cash...
Either way, when it's over I want a list of the zip codes where the dealers are who actually got the money are...
I’ve got a bridge for sale...
Don't overgeneralize. Many rich people got rich because they don't waste money in the first place, and those habits continue even after they become wealthy. They may start small businesses, manage cash flow carefully so those businesses grow and survive tough times, conserve their personal finances, don't overspend on houses or cars, and that's how they become, and stay, rich. The founder of Novel was a billionaire. He lived in a modest 2500 square foot house and drove a cheap car. He flew commercial, and not first class either.
No matter how much income you have, if you overspend you become poor. Look at Michael Jackson. His income from just the Beatles music he bought was something like $20 million per year. He had assets worth half a billion dollars by some estimates. But he spent so much money, millions in a single shopping spree sometimes, he was far, far underwater in debt by the time he died. It will take a decade to unravel it.
My bad. Did not know about the ownership period rule.
I’m frankly surprised the plan is so popular then. It’s like offering a large sum of cash as a downpayment for a Porsche, but to qualify you have to be destitute and unemployed.
Got my new Jeep Liberty on Wed just in time for my 16 yo daughter. Traded in my 97 Lincoln, I paid cash no financing.
I guess I’m one of the rich guys that took advantage of the program. And now that the government see that the wealthy are getting a good deal the program is done.
That’s exactly what the weatherization program does.
Just oy.
I might not have believed it if I didn't know, for example, that Home Depot puts such returned merchandise as weed whackers in the crusher rather then send it back to the mfg, give it to charity, etc. regardless of how infinitesimal the problem with the unit is.
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