Junk for thunkers:

http://www.autospies.com/news/Cash-For-Clunkers-Bites-Back-20-Of-Leases-Under-Program-Now-Seeking-Rescue-From-Contract-56568/ said: It’s been one year since the United States government threw some jumper cables onto slumping auto sales with the trade-in program known as Cash for Clunkers. Formally called the cars Allowance Rebate System (CARS), the U.S. Government offered a $3,500 or $4,500 incentive in exchange for a 1984-2001 model year car. Attributed to the sale of around 700,000 vehicles within a 30 day period, the program was viewed as widely successful in stimulating an automotive sale bounce. In relations to the top-10 cars purchased under the Cash for Clunkers program, every car had a retail price starting under $30,000 meaning the government rebate accounted for 10-15% of the qualifying new car’s value. According to LeaseTrader.com, droves of Cash for Clunkers-inspired vehicle lessees (who is said to account for 1 in 5 total vehicle sales during the incentive’s period) are actively seeking rescue from their contracts. In lease agreements required to be a minimum of five years, a degree of these commitments have fallen under the category of biting off more than a lessee can chew as monthly payments began to overwhelm the pocketbook.

Someone here gets to say "I told you so!"

I don't know about "I told you so", but I'm thinking more along the lines of "what a maroon".

What kind of folks buy crap they can't pay for? It was houses that nearly killed the world economy (the U.S. isn't the only country with thousands of vacant "new" houses) and these schmucks can't figure out how much of a car payment is too much....

Memphis is the bankruptcy capital of the U.S. and it was said that when bankruptcy was easier that some folks in this area did it over and over again. I've never written a bad check, and never "bitten off more than I can chew....financially speaking". I have come close once or twice and many of my friends and relatives think I am very conservative with money, but some of them have maxxed out their credit or been in bankruptcy, not me.

John Brown wrote:

According to LeaseTrader.com, droves of Cash for Clunkers-inspired vehicle lessees (who is said to account for 1 in 5 total vehicle sales during the incentive’s period) are actively seeking rescue from their contracts. In lease agreements required to be a minimum of five years, a degree of these commitments have fallen under the category of biting off more than a lessee can chew as monthly payments began to overwhelm the pocketbook.

Someone here gets to say "I told you so!"

1 out of 5 people can't afford their crap? What else is new? Sometimes it seems to be an American value to live on credit above one's means whenever possible...

buy now, pay later is the american (and the world) way.

The only thing I have ever purchased without the cash available to pay for it was my house. My first home I put down almost 70% of the purchase price ! I've tried to instill the same ethic in my sons,"If you can't pay for it, you can't afford it." You don't have to have a new car every 3 years, you don't need that 72" TV, etc.,etc.,etc. Unfortunately ,I think we'll see a wholesale return to past practices as soon as the economy picks up again.

Still wish I could have used our old truck for C4C. A shiney new versa hatch for $8500 would have been nice.

Only 1 in 5 bit off more than they could chew? Isn't that lower than normal?

Well, if it's bad enough that they're clamoring for another "personal" bailout, it's probably just the tip of the iceberg. I would expect there are a lot more just getting by that probably shouldn't have leased a car either.

The media has made it socially acceptable and politically correct to bail on your debts. It's much more prevalent now than it was.

buy now, pay later is the american (and the world) way.

That is a very good description of my education and student loans, good sir.

Vigo wrote:

buy now, pay later is the american (and the world) way.

That is a very good description of my education and student loans, good sir.

I love talking to financial aid officers. My family doesn't qualify for more than a reduced rate loan through FAFSA. I talk to the financial aid lady, and she tells me that its no problem to take out loans to pay for everything....

Okay lady, so you are telling me that I should go out and buy a brand new Lexus the day that I graduate? Thats the amount of debt you want me to have? Does that sound like a wise decision?
No comeback.

I don't understand your comparo?

I liken student loans to "investing" in your future as it increases your value to the workforce. A car is a depreciating liability.

carguy123 wrote: The media has made it socially acceptable and politically correct to bail on your debts. It's much more prevalent now than it was.

The media had nothing to do with it. People made it socially acceptable to do so, and your government is backing it.

We SOLD a bunch of cars when the dealers where going hog wild but our slogan GRM fashion was ""CLUNKERS FOR CASH "" still got the banner if it comes back