Current Events > Why are so many people like this

(+) Yeah! (+)

https://www.reddit.com/r/personalfinance/comments/9io7ks/how_does_a_21000_car_minus_5500_equal_30600/

- Combined household income of $50k
- Credit score of 580
- Existing car has a trade in value of $5.5k
- Wants to buy a brand new $21k car on a 72 month finance plan with no money down
- "I'm so confused why is the interest rate so high"
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Somebody post the dril tweet
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Its people like that this who contribute to credit crunches.

The entire credit industry needs overhauling, as its failings to responsibly lend have huge repercussions for everyone.

Tbh, the capitalist model is unworkable mid to long term. Certainly with respects that ever growing mass demand for a wide array of hi marketed and hi desirable products isnt sustainable or ethical.
Ethical because of the pressures that such demands place upon society - usually the easily manipulated, and not to mention the huge impact this has on the environment, re product manufacturing and said products short life spans.
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Is that the one that goes

https://twitter.com/dril/status/384408932061417472
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Yes!
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Because our parents did a good job of making sure that everyone feels like they need to buy a new car to reflect their success and position in life, and car manufacturers did a good job of abusing monthly payments to obscure the prices of new cars & make people with little financial sense purchase much more car than they can afford
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My parents do this.
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This is why I never buy a car i can't pay for outright. My cars are ten years old or older, but I don't care.
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green butter posted...

Because our parents did a good job of making sure that everyone feels like they need to buy a new car to reflect their success and position in life, and car manufacturers did a good job of abusing monthly payments to obscure the prices of new cars & make people with little financial sense purchase much more car than they can afford

When I worked at a mercedes dealership there were so many people who came in prepared to hang themselves by their own finances just so they could get a brand new bottom-end mercedes. Like honestly people decided to buy a C200 even though they earn $50k a year and hadn't worked out how much the servicing costs would be.

It also annoyed me because I saw these cars come and go all the time and quite honestly a Honda Accord Euro was a better car with better nice features at a fraction of the price, but these people just really wanted a Merc.
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unpleasant_milk posted...

Its people like that this who contribute to credit crunches.

The entire credit industry needs overhauling, as its failings to responsibly lend have huge repercussions for everyone.

Tbh, the capitalist model is unworkable mid to long term. Certainly with respects that ever growing mass demand for a wide array of hi marketed and hi desirable products isnt sustainable or ethical.
Ethical because of the pressures that such demands place upon society - usually the easily manipulated, and not to mention the huge impact this has on the environment, re product manufacturing and said products short life spans.

The fucked up part is that there is substantial economy/market based on debt where there is a bit of incentive, at best, or collusion, which still isn't the worst possibility, to create and foster debt. I agree that regulation is necessary in this regard, but there's very little incentive in our economic model to change it, at least to the laymen. It should be obvious that a healthy economy doesn't have a substantial portion of the people mired in debt.
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The good news is that if you're smart with your finances you will be rewarded for other people's irresponsible-ness. Like getting a free hotel room on your credit card.
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