Cash For Clunkers Causes Buyers' Remorse For Some
By Liz Opsitnik
Wednesday, Aug 26 2009 09:28
For more than 600,000 consumers, the cash for clunkers rebate was hard to pass up. Receiving up to $4,500 from the government to trade-in an older, gas-guzzling vehicle to put toward a new, fuel-efficient car was a great deal, as some of the clunkers were only worth a few hundred dollars.
Now that all these buyers have taken on an auto loan or lease payment, some are regretting it.
In a new survey of nearly 1,000 CARS (cash for clunkers) participants, 17% say they have some or serious doubts they should have made the new-vehicle purchase, according to CNW Research.
The main reason for the buyers’ remorse is that they now have a $275 to $350 monthly car loan payment that they didn’t have before. This new monthly expense could negatively impact the total family budget more than expected before buying the new vehicle, the survey participants said.
Normally, buyers’ remorse affects about 6 to 8% of new-vehicle buyers within a month, according to CNW Purchase Path research.
Maybe the rebate deal was too good to pass up, or consumers were concerned about the effect of the older cars on the environment or they didn’t want to keep repairing their older vehicles any more. Whatever the reason, more than 600,000 people took advantage of the government cash for clunkers program and bought new vehicles. Now some are wishing they didn’t.
The main reason for the buyers’ remorse is that they now have a $275 to $350 monthly car loan payment that they didn’t have before. This new monthly expense could negatively impact the total family budget more than expected before buying the new vehicle
Holly "DUH"! It's amazing that people couldn't have thought that one through. Hmmmm, no car payments vs car payments? Then figure how long it's going to take before you see any savings from the actual difference in gas mileage, MANY years.
The main reason for the buyers’ remorse is that they now have a $275 to $350 monthly car loan payment that they didn’t have before. This new monthly expense could negatively impact the total family budget more than expected before buying the new vehicle
Are people really this stupid? I mean come on.. If they're paying that much, they bought something they shouldn't have. I saw commercials for at least 10 different cars that would have had payments lower than $200 a month if financed properly. Some people just don't know how to budget.. I have two new cars now. An 07 Dodge Magnum and an 08 Suzuki XL7. My magnum was fully financed and has a high note. But the XL7 was only about 60% financing and the note is $230.
eGo
PM before Email People!!
Heat Under eGoCeNTRoNiX Who Farted? BEANIE!!!
!Welcome to the United States of the Offended!
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“The Government of Spain will not applaud those who set the world on fire just because they show up with a bucket.” - Prime Minister of Spain, Pedro Sánchez
BIG difference. Mortgages are very complicated and they are often variable rate. Very often you may not have a clear idea of what your payments are going to be if you don't ask the right questions.
When you sign the the dotted line for a car loan, you know EXACTLY how much you're going to pay every month, and that amount will not vary.
So again, anyone that's complaining is an idiot. No one forced them into buying a new car. They liked the rebate, they went to the dealer, they priced a new car and they signed on the dotted line.
Sure some dealers may have used high pressure tactics but what else is new? Has nothing to do with cash for clunkers.
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“The Government of Spain will not applaud those who set the world on fire just because they show up with a bucket.” - Prime Minister of Spain, Pedro Sánchez
I admit, I was incredibly tempted myself. But every time I thought about it, I couldn't justify the added expense in my life. Sometimes a free $4500 isn't as free as you'd wish it was.
FlyingPenguin wrote:BIG difference. Mortgages are very complicated and they are often variable rate. Very often you may not have a clear idea of what your payments are going to be if you don't ask the right questions.
That is moronic. only an IDIOT dosent know what they are signing in either case.
normalicy wrote:I admit, I was incredibly tempted myself. But every time I thought about it, I couldn't justify the added expense in my life. Sometimes a free $4500 isn't as free as you'd wish it was.
that is why i didn't replace my 1998 f-150 . but if i would of found out sooner. that i could of got a ford f-150 for $11200.00 out the door . i been one of the thousand's feeling remorse as the payments would hit. yes i need to replace it .but i sure don't need any more payments right now .
the Last time I was Talking to myself . I got into such a heated argument . that is why I swore I never talk to that guy again. you know what it worked now no buddy talking to me.
