Quote:
Originally Posted by marketsmart
i read that people bought cars they couldnt afford because of the program and that the repo rate will be ridiculous in the next 24 months...
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I don't follow the logic, it was just a 3 - 4K credit.
People who buy things that can't afford typically have to finance it. The banks, especially the way they are now are not going to let people finance a lot more t han they can afford. How much income you make and your credit score is factored in.
So its not like, well we could only get financed for a 20K car, but now that there is a 3-4K credit we can go buy a 50K car and finance 46K... Sorry doesn't work that way.
More realistically people should have used the credit to buy what they would have normally been approved for, for 4K less. If they were normally approved to finance 20K they should have bought the 20K car and financed 16K because of the credit, saving them money. But in most cases if they were approved to finance 20K they probably bought a 24K car, used the 4K credit to get them back down to 20K. So they get a little nicer car but have no savings on their monthly note because of the credit.