Comment by Nextgrid
3 hours ago
> they have the loan rates for 6-10 years memorized, not 3-5 years
Playing Devil's Advocate, if you're going to be fucked either way, why not be fucked and have a nice truck than not?
It seems like, at least from an uninformed EU perspective, that if the "system" gives you the ability to get a big truck for no worse off that if you weren't going to get it, why wouldn't you?
It seems like auto manufacturers overly inflated their prices, and the loan issuers are mopping up said inflation back - so in the end the borrower (at least if poor and they're going to default either way) is better off getting more truck for their buck than less.
Because most people who are fucked, are fucked due to terrible money spending habits. Tons and tons of people who make six figures are living paycheck to paycheck. Not because they must but because they won't stop spending poorly.
Again, I don't understand the desperate internet trend of defending terrible choices by focusing on the, like, 0.001% of people who do everything right and still fail. We've got the highest living standards on the planet. It's absolutely a choice.
I was hoping for some genuine counterpoints but this just feels like a rant? It feels like the stereotypical response that millennials could afford property if only they didn’t spend their money on avocado toast at Starbucks.
Let’s say a normal car costs you $200/month and a big truck costs 400.
200 is not going to make a difference in your situation - you are either good either way or close to breaking point and therefore fucked either way (if not this month, then the next one when you have an unexpected large expense).
If you’re fucked, why not take advantage as much as possible and get the most truck for your buck? Well “your buck” in quotes but you get my point.
If my budget was at breaking point and for only 200 bucks extra (one time payment since I’m gonna default next month) you can bet I’m gonna take advantage and get another ~20k worth of truck that I’ll get to keep until the bankruptcy proceedings complete (at which point the extra would’ve depreciated off anyway). Or is there something I’m missing?
I don't think most people are buying trucks and then defaulting the next month either that's a bizarre argument to make. And 200 a month is a lot of money!
200 * 12 = 2400 * 4 years( let's be real it would be longer ) = 9600. That IS a lot of money, it's not going to solve every problem immediately but applying the mindset of whatever Im screwed so I might as well set my money on fire is exactly how people keep sinking into the hole. You take the 200 extra on the car, on the apartment, the 150 pants. Its death by a thousand paper cuts and it will make a bad situation much worse.