Please tell me your all knowing first-gay-president Trudeau had the wisdom to prevent you Canadians from engaging in such stupidity.
Please tell me your all knowing first-gay-president Trudeau had the wisdom to prevent you Canadians from engaging in such stupidity.
Meanwhile, here in Ontario, the Wynne mob are broadcasting constant radio ads telling the suckers, (who, in Ontario, are ALL of us), that Hydro bills will soon see around a 25% reduction.
Yup, our grandchildren will still be paying for the electricity we used last year.
In Canada, the problem would be (will be?) addressed by turdo la doo and Wynne coming up with a program whereby consumers with bad credit would be able to purchase electric cars with interest-free, tax-payer subsidized loans.
Listening to the Blue Jays games (and later sports talk) on the local Rogers station, I’ve been struck by the number of advertisements from multiple used-car dealers, all of which are pitched at people with “bad credit or no credit”, with slogans like, “Getting you approved for your auto loan is what we do.” Another offers a heart-felt endorsement by a woman who didn’t think she could get a car because “being a single mom, and my situation” found that within a half hour she was leaving the lot “with that sports car I’ve always wanted”.
It’s left me wondering if these dealers ever encounter (or even want to encounter) people who actually wish to purchase a vehicle with their own money.
Fun with car dealers, go to Auto Traders tab in the make, model, mileage and your postal code and they will tell you the average price for the vehicle you are interested in.
That is in your area, I am on the west coast, van island , prices tend to be higher here.
But the vehicles don’t face the winter and salt so tend to be in better shape, and last a lot longer.
Car dealers respond poorly to a fair offer, they think overpricing a truck at 25k when a fair price is 18K is OK.
However they will move, do not ever use their “easy financing” it is the road to ruin.
Captain, you used “wisdom” and “Trudeau” in the same sentence.
That’s funny!
A couple of days ago I had an enlightening conversation with an auto lender at one of our chartered banks. If a borrower can handle the payments (today that is) they will lend you 150% of the deemed value of the vehicle. Yup….that’s one hundred fifty percent!!!!! He and I had a good laugh about the 30%, 30 feet off the dealer’s lot, depreciation issue. The problem is not at all confined to class B or C lenders. The credit crash is a 100% certainty.
“It may seem easy to write Woodrum off as ignorant of finance, or budgeting, or the car buying process.”
It only seems easy because it is true. “UP TO 90% OFF” sales were designed especially for his brand of ignorance too.
A secured loan with a 25% intrest rate?!
The guy had $4k cash and needed a car, pretty sure you can trade $4k for a car. Will it be nice? Will it be cool? No, but it will get you to work.
If people who can’t pay their bills want to borrow more money to have things they can’t afford who am I to stop them? And by extension why is it the business of the government to be involved in this?
The key here is to not have the government backstop this (or housing) lending.
Semi-related, CMHC will be returning Billions (with a B) to the government as a dividend. Notice how a government mandated insurance on the middle class home ownership is not refunding those home owners or shoring up its reserves, its giving money to the government. This is a tax, and its a tax on the very middle class that all politicians pander about yet screw.
$41,256 paid out for a $21,000 truck. That is a substantial stupidity tax.
The budget conscious should buy a small car rather than a truck; less fuel, lower insurance rates…why am I explaining this….
precisely. the *condition* and thus life expectancy of the vehicles never seems to come up.
if I was in this bloke’s position I would have made some sort of standing arrangement with a friggin cab company or something. lots of cab rides for 750 a month.
I had a time of unstable employment and drove a Chevy Cavalier with 125,000 clicks. the repairs roughly equaled payments on a car loan. BUT, any time I had a hiccup in my employment, the car sat in the driveway, no need for repairs AND no friggin car loan to get it repossessed.
it all worked out when I switched to construction work until I retired about 5 yrs later. I STILL dont have a g**amn car loan dogging my.
You’re explaining this because like a lot of conservatives you still firmly believe that if you explain things often enough the knowledge will result in educating even the morons around us. Hopefully you, like most of us here, will eventually come to the conclusion that imparting an education does not equate to instilling knowledge. Hence we have a sitting House of Commons that is inhabited by many ‘educated’ people who don’t have the inherent knowledge (common sense) to understand there is no free lunch.
The stupidity of the alleged victim in the article leaves me with no sympathy for him whatsoever. How stupid do you have to be to pay 25% interest? For $4000 you can buy a decent junker that will run for a few years and get you to work and back,but this idiot had to have a vehicle that impressed himself and/or his friends.
I worked in construction for 27 years,and met SO many kids fresh out of high school who did the same as the guy in the article; bought a big expensive p/u they couldn’t afford,then had it repossessed when they failed to make a payment. They always figured the company that repossessed the vehicle were complete assholes,dirty sob’s,etc. etc., but the fact they had an obligation never seemed to occur to them.
Are they educating these kids in school for real life or what the hell are they doing that a kid can’t figure out;if I make $2000 a month and have to pay $750 car payments and $700 rent and after taxes I clear $1500 per month…………… and my girlfriend likes those diamond earrings at Birks and my payments will only be $150/month….but she loves me….and her old boyfriend might buy them for her instead…..
Prince Phillip’s right,we need a plague.
Will the bailout include a “cash for clunkers” clause, wherein the owners of upside-down automobile mortgages will be offered a shiny new “affordable” Tesla electric saloon for the low-low … just for today … retail price of $ 36k ? Not to worry though, because the bailout will include “special” 120 month financing at only 19.5% interest. Why such a long financing term? Because everyone knows the Tesla has NO engine … to fail … so their autos will last forever! And … because there is NO middle class anymore … so this is the only way to sell automobiles. And do not worry. Everyone who “qualifies” for a shiny new government subsidized Tesla will also receive government subsidized electricity. But do not worry … because all of this is being paid for by … “taxing the rich”
One of my early lessons in life, I learned from being friends with the children of an enormously wealthy local land-owner/developer. I would estimate their family wealth at close to $100 million. Their father and patriarch of the family drove a tired, old, Buick station wagon. The kind of old 1960’s wagon with “Squire” trim consisting of fake wood grain trim. The automobile was a real “beater”. The family had no “visible” means of wealth … except for their personal home which was a large, classic home on considerable hillside acreage. The family taught me the difference between “old money” … and “new money”. Hence, I still drive and maintain my 1991 sedan … and don’t give a damn what other people “think” of me for doing so.
but the fact they had an obligation never seemed to occur to them.
I owned only 2 cars until recently. I bought those vehicles brand new, paying for both of them in cash. I did it by being careful with my money, saving as much as I could until I could afford to buy them.
I did it that way because I grew up with the idea that unnecessary debt was shameful and that I shouldn’t spend money I didn’t have. Once I had the cash on hand, though, I could buy whatever I wanted but I also needed to make sure it was the best that my budget would allow me.
It escapes me that most people I know don’t understand that.
Oh God Aaron! Canadians are STUPID!!!!! I see the northern Venezuela a few years from now in the Canadian future.
If a person cannot compute the total cost of a loan he shouldn’t take that loan. It’s easy to do on a spreadsheet, and spreadsheets come e.g. with Google Docs. NO EXCUSE for not doing the calculation.
Borrowed money is expensive money.
What will Wynne give you for purchasing a Tesla? $700,000,000 or something in rebates now?
It is about destroying freedom. A middle class ensures freedom; destroying the middle class means destroying freedom is easier. Increasing the underclass gives you an army that will willingly trade and do anything for the promise of security.
Borrowed money is expensive money.
Yup. I’m finding that out right now. I borrowed money in order to pay the fee for having my father’s will probated. I’d like to clear that debt as soon as possible because the interest keeps piling up. However, I’ve got all sorts of other expenses related to settling the estate and I want to take care of those before I finally pay off the loan.
Needless to say, the parties I have the deal with in this matter couldn’t care less.
Borrow to invest only. It’s tax deductible. If your financial institution balks, tell them it’s to buy shares in their Bank. You’d be surprised at their change in attitude….”How much????”. Once you own a few hundred shares use them as collateral to buy other investment stuff, like the competition in banking. Deduct the interest, ’cause it’s “to earn investment income”. Rinse & repeat for 30 years & you don’t need CPP or OAS.
Trust me on this, been there, done that. Stuff some of that money into a Tax Free Savings Account annually. Say a quiet thanks to Harper when you do. I’m surprised that the LPOC hasn’t axed that yet. Give the CRA & civil serpents time & a Liberal ear & they will. Teach your kids to do the same. It’s good advice & they’ll be farther ahead financially, when they get to be your age.
It seems from the comments that the SDA crowd are smarter than the average person, Canadian or otherwise. I’ve owned 16 cars over the years and the only one I bought on time was paid off in three years. Since it turned out to be the worst car I ever owned, I traded it in the same month it was paid off! Only three of the 16 cars were new, the rest I let someone else take the depreciation on.
PO’d in AB – I did that for a few years and then paid off the mortgage I used for investments, now I have a house and two cars (one with ‘collector’ plates) clear and can go about spending my children’s inheritance on tourism. Maybe I’ll send a postcard to my banker… but not one to Trudeau!
Borrow to invest only. It’s tax deductible.
I’ve been doing most of what you suggested for several years. Dividend reinvestment plans are terrific!
I promptly paid back the money that I borrowed to buy shares. That resulted in the limit on my line of credit eventually being raised to a level that I could afford to write a cheque for the probate fee.
Even without my inheritance, I wouldn’t have needed any government benefits. My investment portfolio produced enough for me to live quite comfortably.