No Shiny New Car For You!!

[tropicsgoddess]

I work as an Appointment Setter for a major Ford dealership in my are. My co-worker told me these gems she got from sales.


She Works Hard For Her Money


This lady comes in and wants financing on a new 2008 Ford Edge. The salesperson goes over her credit history and tells her it's a no go because of her bad credit and offers her to try and purchase a used car instead. She tells him she still wants the new car and that's it and how she works hard, makes good money, has a good job and deserves to get a new car. The salesperson tells her that there's nothing that can be done for her since she refuses to take up the offer due to her credit.



When Will She Learn?!


This woman comes in with her kids and wants to trade in her Buick, which was falling apart for a new 2008 Ford Edge. She had some money on her thanks to her daddy, but only so much. The salesperson tells her that she's going over what money she has and to top that her credit was not so hot. The salesperson offers her some options with the Fusion or Focus, but the woman insists on getting that Edge, so guess who lost? She did and drove off in that same raggedy ass car. To top that, before she came to my dealership she went to about 20 others that rejected her and was on her way to another one.


It still amazes me how despite the recession going on, there's still people going beyond their means to try and live the life and keep up with the Jones'.

[protege]

It still amazes me how despite the recession going on, there's still people going beyond their means to try and live the life and keep up with the Jones'.

I never really understood that one. Where I live, there aren't too many expensive cars. It's not Beverly Hills, but it's a nice area. Lots of family cars (Chevys, Hondas, etc.) but nothing really expensive. A few Cadillacs, and BMWs, but that's about it. As such, there's really not a "need" to outdo each other. Some people choose to do it, but I'm glad I'm not one of them. My ego's not that fragile

When I bought my current Corolla, I was more concerned about reliability and fuel economy...rather than perceived status. I bought my car to get somewhere, not to um, compensate for something Mercedes and BMW make nice cars, but they're a bitch to get parts for. A simple service can easily cost several hundred dollars.

...and I'm sure some people are rolling their eyes at me right now, mainly because of the MG. Yep, I own a sports car. Yep, it's bright orange. Didn't get it for those reasons though. It's not the fastest thing out there (it's seen 120mph in the desert though ), but again, I don't care. If I wanted to go fast, I'd get a Jaguar E-type, an Austin Healey 3000, or similar vehicles.

No, the MG isn't about any of that. It's simply an older car...that happens to be fun to drive MG has always had a sporting heritage--I still find it amusing that the first 750 cc car to break 100mph was an MG back in the '30s, and that the works racers occasionally *beat* the massive Bentleys in those days...but I digress.

My MG has gone from new car (originally my uncle's), to cheap runabout, to rotting away in my mother's garage...to getting restored and a cherished classic.

What I'm trying to say is...that I can't see the point of living outside one's means. The reason I was able to get the house and cars...was because I literally saved for years. After college, I was living with my parents, drove an old Tercel...and simply didn't have any bills. Because of that, I was able to pay off my school loans early, get rid of the Tercel, and then pay off the Mazda early as well.

Over the next 6 years, I started saving again. This time, for a house, and to get the MG running again. By the time September 2006 rolled around, I had enough for the down payment. I put down about 40% and financed the rest. While this was going on, I was also working on the MG. Didn't pay for all of it at once. Had the engine rebuilt first, then some bodywork (new panels, new paint, etc.), followed by the rest. I did what I could, and hired someone else to do the nasty stuff.

Getting back on topic (again) here, when I bought the Corolla...I had no problem getting financing. Because I was thrifty with my money, I had a good credit rating. Even so, a $200+ car payment was slightly more than I could handle at the time. I'd bought the house the previous year, and had taken a pay cut shortly after Christmas. Soooo that meant dipping into the cash I'd set aside for the MG, and using that towards most of a new car, and financing the rest.

It sucks I had to do that, but with the Mazda literally falling apart, I had no choice. Sure, it means that the MG took a bit longer than I intended, but I had to consider my priorities--if the car breaks down, I have no way to get to work! No work = no mortgage payment, no kitty food, etc.

All to often, people put so much emphasis on the bling-bling, and ignore what's really important. Then they turn around and bitch about how their credit rating is shit, the credit card company sucks, etc.

[Argabarga]

I see the wreckage of people living beyond their means every day at work, (my company does repo work) I can only shake my head when another brand new minivan or SUV comes into the lot as a repo, and as it's cleaned out of it's personal property, and the DVD players and electronic appliances and cellphones, and spent lotto tickets start to pile up in the property bags, I just have to wonder how so many people can fail to grasp the simple concept of not spending more than you have.

[Forensic Waitress]

People sometimes look at me in shock when I get out my very worn out 6 month old credit card and tell them that I put everything on it. I only ever put on there what I know I can pay off by the end of the month and because the more I use it the more points I get to put towards cool things for myself.

I have never missed a payment and so the rewards point work to my advantage as I do technically get the item for free. I have gotten cameras, kitchen appliances etc because of this. This is all due to not living outside my means and going without when I don't have the money for it.

This is all on top of the fact that I am a casual worker and go to uni and do not always have guaranteed work, but I have nearly all the money I need for insurance etc for the car due next January, money for bills, spare money for me to spend on anything and savings. The only way I did that was through very careful budgeting.

And because I also got my partner on a budget we will be able to go overseas in July, which is exciting because it is his first overseas trip. So from all of that I still don't get why people put themselves in huge amounts of debt to have the latest tv or camera it is just plain stupid if you ask me.

[powerboy]

I think that there should be no Credit. It should just be, if you have the money then yeah. But if not, then sucks to be you. A lot of people would budget their money better.

[Broomjockey]

I think that there should be no Credit.

This is starting to get into Fratching territory, as it's quite easy to come up with a number of situations where credit would be a necessity. Back on topic please.

[Javarod]

Chuckles, "I have the honor of having been one of those people, and I have the bankruptcy and bad credit to show for it. Maybe I'm odd, but in my case I think it was growing up poor particularly in an area where the poor were the minority, it creates an inferiority complex. That and I'm a type A- workaholic, so my attitude was spend what you make, you can always make more. Its taken a while, but I've learned not to do that, I still want a lot, but its divided into three categories, need (more or less), want & worth getting, and want but not really worth it."

[Greenday]

Spending comes pretty easy to me. I bank nearly all my cash during the summer. Just buy gas and the occasional six-pack. VERY low maintenance during the summer.

Then, during the school year, I buy books, and whatever money I have left goes towards the occasional take-out and gas. This way I have money when something bad inevitably happens to my car.

[mischugenah]

I just have to wonder how so many people can fail to grasp the simple concept of not spending more than you have.

Don't you know? This is AMERICA! We all DESERVE to have everything our greedy little hearts desire, no matter what!

[SuperB]

All of the ads lately aren't helping things either. "Spend you rebate check here!" and usually it's the big car lots. We've been pondering a small car to save on gas for summer and winters where we don't need the 4WD but as we look they aren't interested in selling us what we want but the newest thing on the lot. One guy, after listening to what we wanted and what we were willing to spend and that we wouldn't go any higher steered us to some ridiculously priced used cars that were way beyond what we wanted or would ever be willing to pay and started extolling the wonderful world of 'Financing'. The man could not understand that we were only interested in bottom line price and not a low monthly payment.

[protege]

That's exactly what it is. Too many idiots think they're *entitled* to all the bling-bling, yet don't want to pay for it. These people simply don't understand how credit works--they all see credit as "free money." As such, they'll run up massive bills, and then bitch about how "credit card companies are evil."and "ripping people off."

For example, before I bought my house, I took a (free) homebuyer's class. I had no clue what I was doing, and wasn't about to get into trouble. The class was held by the county's non-profit housing agency, who was trying to help lower-income people get their own homes. (What they would do, is buy abandoned properties, fix them up, and then sell them at seriously-low interest rates. They were trying to rebuild some of the more distressed communities.)

(I'm not trying to sound like an asshole when I say this...) but some of those folks had *no* idea what was going on. The concept of "budgeting" was a foreign one. Nearly all of them had massive credit card debt, crappy ratings, but couldn't understand why the banks would turn them down for a loan. At least one of those fools claimed it was because "we're black."

Um, no you moron! The banks see you as a credit risk!

[csever01]

I plan to drive my already seven-year-old car until it either dies completely or starts costing me so much money to fix that it's not worth it anymore. When I do buy a new car, I look at practicality first. For starters, this is Minnesota, so I will go with something that can withstand our winters - nothing real low to the ground. And obviously I look at gas mileage. In fact, when I bought my current car in 2001, I looked at gas mileage back then, even though gas was still cheap. So I'm lucky right now, driving around in a car that usually gets about 30 miles per gallon.

I have horrible credit, too, but for reasons that were actually beyond my control. I owned my own house and had roommates, but then the house flooded and was pretty much destroyed. Homeowner's Insurance doesn't cover flooding unless you're in a floodplain, so the house ended up being condemned and foreclosed because it was now worth less than what I still owed on it, so I couldn't sell it. ANYWAY - the point here is that I would NEVER go into a place like that expecting them to give me ANYTHING with my credit the way it is. In fact, I'd probably research my creditworthiness BEFORE I went in so I could avoid the situation entirely if my credit still wasn't good enough.

And if I DID go in to a dealership and they checked my credit and said it wasn't good enough, I'd say, "Oh, OK, thanks for your time." And I'd leave. I don't understand why SCs always think that just because they bitch about something, they'll get what they want. Of course, it's companies like mine that unfortunately reward this behavior.

[Javarod]

Yeah, there's too many ads for how to spend your rebate check, although the radio one for Home Depot was decent, they recommended spending it on home improvements that would raise the value and energy efficiency of your home. Now that I can see as a good use for the check.

[Gurndigarn]

Yeah, there's too many ads for how to spend your rebate check, although the radio one for Home Depot was decent, they recommended spending it on home improvements that would raise the value and energy efficiency of your home. Now that I can see as a good use for the check.

Energy efficiency: good, causes a decrease in future spending

Value of your home: only if you're planning on being in it for a while and it will be more valuable for you personally or if it really needs fixing. Otherwise, home improvements are usually like buying a new car or computer: the value drops the moment you leave the parking lot. Especially with housing prices in a freefall.

[ebonyknight]

I see the wreckage of people living beyond their means every day at work, (my company does repo work) I can only shake my head when another brand new minivan or SUV comes into the lot as a repo, and as it's cleaned out of it's personal property, and the DVD players and electronic appliances and cellphones, and spent lotto tickets start to pile up in the property bags, I just have to wonder how so many people can fail to grasp the simple concept of not spending more than you have.

It's just that some people cannot learn beyond their experiences. So it should be mandatory that some type of finance classes be taken in high school. Most of that negative behavior happens in college or around the college age, when the credit card companies throw cards at people and they really don't realize that there is a cost involved.

My cousin, Sgt in the Army, works in IT. Not really a mouth breather type. But when he came here from England to go to school, he took the credit cards. He ruined his credit because it wasn't really explained to him that he had to pay it back!

My father encouraged me to get a job in high school and made me open a bank account. I also took Home Ec in high school, so I was prepared. Most people aren't and even though it seems to be common sense, it just isn't to a lot of people.