Now that Cash for Clunkers is over, who wants to bet that we're going to see many more Repo reality shows with the Repo guy hunting for the car, finding it, and hauling it away?
Why, you ask? Many people have clunkers for a reason. Because they can't afford new cars. Just because they were given $3500-4500 to trade in their old car, does that mean they have the means to actually pay the car payment every month?
People got 100% financing so they could buy a house when they couldn't actually afford it, and look at all the foreclosures.
Why did the government not think for a second that this program would just create more jobs for the Repo Man?
My bet is that within three months, it's going to be all over the news.
What do you think? Are people going to actually make these car payments, or expect a free ride??
**Are You Packed Yet?**
Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.com
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Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
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* Cash for Clunkers - Going to Create New Repo Jobs? *
Donna I have to tell you, I was thinking the same thing when they started this whole program.
Good question, I often wondered the same thing myself. I suppose we'll find out in the long run, for now the theory is that it was a great success.
I am very dubious of any special program from Washington.
I have a friend who owns a repo company. You are 100% correct. Part of the New Change program creating jobs.
Donna, you must have heard my husband and I talking yesterday....we are thinking the same thing. It could also be a new wave of people not paying their mortgage and rent payments too.
Donna - If the answer is yes, it simply highlights the ongoing fundamental problem in the lending industry. Creditors remain willing to give people more money than they can afford to pay back.
I am sure there will be more repos. Most people weren't informed of the fact that they will be taxed on this "bonus" money either. Where are they going to come up with the funds to pay the taxes on the money as well??
Donna,
Sad to say but I think you hit this one right on the head. Some people just will not practice good financial responsibility.
Hi Donna... that is a good question. There may be some repos due to poor financial judgement (and there would have been and always will be, regardless of whether this program had existed), but in the coming months I suspect that there will also be people who bought cars and then lost their job a few months later. With any incentive program there will always be some people for whom the temptation is too much and decide to buy something when they shouldn't. But I think that issue is better addressed by lenders more thoroughly assessing, up front, the risk associated with the loans that they make.
Donna I think there will be beaucoup repos - people haven't gotten over the "free lunch syndrome" yet Karen
Gosh Donna, I hope that is not the case. You make a good point, and ask a good question... and all I can say is 'I hope not'.
Hi Donna
What your saying is very realize but let's hope not.
Good luck and success.
Lou Ludwig
Donna - I have never purchased a brand new car, and not because I couldn't afford one. I used to think cars were so much more important until I realized that after 5 years they all tend to get on my nerves.
Donna,
I don't think it will quite the same under they got the loan with an ARM.
LOL at Greg. I have never heard of a car getting on someoes nerves. Maybe the car breaking down.
I apologize about not responding to anyone. I got sick for a few days after posting this, and completely forgot to check back in.
Thanks for all the comments, and let's hope that the cars don't get repoed, but I really believe it's going to happen. It's not an "unforeseen" circumstance as I'm sure the government is predicting it as well... but as long as cars are being sold, who cares, right?