Tuesday, November 02, 2010

Coerced Debt!

Went to look at a certified pre-owned minivan today...

That's it above. Before I got there, I was wondering about the line - *Must finance with dealer*.

Did it mean that IF you finance the car you have to go through them?

Or, that EVERY BUYER was required to finance the car (through them)?

Because the C-Nut family is a debt-free entity....we pay cash.

Guess what, the latter was the case. The low price was contingent on financing. The salesman told us that we'd have to pay MORE ("a few more points"???) if we paid cash.

So they essentially force people into car loan debt. The prices are thus higher because buyers are conditioned to look at *monthly payments* rather than total cost. It's a vicious self-perpetuating cycle.

Yet this is the tragic state of our economy - where one can't buy a house without entering into a minimum of 30 years of debt slavery (again, because rampant borrowing has nuked prices into the stratosphere), where a corporation can't compete unless it leverages long-term debt, and where one can't go to college without signing on for a mountain of debt and having their parents forfeit their home equity.


Paul Mitchell said...

Is that through a Chrysler dealership? Maybe that is another one of the hideous conditions of that freaking bailout?

CaptiousNut said...


Anne Galivan said...

This is something that has frustrated me for years. As a single-income family we have always driven used cars and for the last 3 years have committed to only paying cash (except for my husband's work truck which we feel is a legitimate business expense for now).

The willingness people have to finance cars for...ev...er drives the price up for everyone. And, in spite of the fact that it is politically incorrect to say this: it is also the fault of couples not willing to sacrifice one income in order to have a parent stay home and raise the kids. (I'm ducking, just in case.)

I've been a stay-at-home for over 26 years not because we can "afford" to (I want to scream every time I hear someone say I am so lucky to be able to "afford" to stay home). The fact is - we simply DID WITHOUT. I drove beater cars forever. I bought recap tires instead of new for my car for years. Clothes shopping? You've gotta be kidding.

Yes, now I drive a gorgeous (10-year old) Acura that we bought when it was seven years old and paid cash. But God blessed us and we got a great deal. And yes, I now go clothes shopping. Because my husband is willing to work his ass off to provide for his family, something that men routinely used to do and thought nothing of it. My dad always worked two jobs.

Now, I realize CNut that you are a stay-at-home dad and I so respect that you and your wife made that choice. I don't think it really matters which parent stays home but most of the time it makes more sense for it to be the mom (breastfeeding and all that...) - and in my case, my husband can make way more than me. (He is a self-employed building contractor, BTW.)

My point is that if you didn't have so many double-income families, the cost of housing and cars, just to name a couple of items, would not be so inflated.

Okay, rant over.

Justin Time said...

C-nut, you seem like a good guy, so I'll give you some free advise:

Don't by a Chrysler. You're Welcome.

Justin Time said...

I should of spelt it "advice", I guess. I must be loosing my mind.