This is really no surprise for most of us here, since we were discussing this a few years back:

http://www.businessweek.com/ap/finan.../D8UQ8V5G1.htm

 

Maybe people can only afford either gas or the payment, and not both.

 

And they certainly can't afford insurance. I think the uninsured rate here in WA is edging on 30% and rising. It's scary to think 5,000 lb chrome-and-pleather Hummscalades are rolling around without any financial responsibility in case of an accident.

 

Wow

 

Auto loan lending has been very lax over the last few years. They give no money down loans to anyone.

 

Seeing the rapid increase in home foreclosures, it doesn't surprise me at all to see this trend in the auto industry as well.

 

You have to question the new 7 year loans being rolled out. They're going to have to start charging PMI like they do with home loans, lol

 

One would think that, after such habits almost killed Mitsubishi a few years back, banks would be a bit smarter. One would be wrong, of course.

I will now concede that GM made a very smart move in selling off that big chunk of GMAC.

 

I've learned to enjoy my low payment small car. I guess way too many people extended themselves, buying cars 5 or 10 grand more expensive than they could really afford etc..

Buy a car that pays at most 20% of what you make after taxes a month and you'll be alright I suppose.

 

Yes, that looked very dumb at the time. I remember everyone here saying how foolish GM was for selling off the only part of the company making money. Now it is one of the best moves they have made.

 

Thats why you should have full coverage, then it doesnt matter what everyone else is doing.

 

Excellent point.

 

Depending on your state, you don't necessarily need full coverage to be covered in an accident with an under-insured/uninsured driver. I have a WI/UI (what they call under/uninsured in IL insurance) coverage on all my vehicles, even the 2 without full coverage. If anything happens in regard to a WI/UI accident, my insurance company will take care of the damages/costs. The best part is that it is only about $8 on each car every month.

They are required by law to offer such coverage in IL, but I don't know about other states. Probably because we have that minimum insurance coverage law here.

 

I thought you couldn't get a car registered without insurance. I thought about it when I bought my Geo Prizm for $300 and they wanted $1200 a year for liability only!

 

Sure.

Just make a payment on the insurance and let it lapse. If you're in a state where the cops can't confirm your insurance status on the spot, you've still got a policy in the glovebox to show'em...

I did that working for Dominos as a driver several years back--I showed what looked to be a current policy and they didn't check to confirm it. Was I proud if it? Not a chance, but when I'm instantly $35K in debt from losing a business and juggling two jobs and then get a job working offshore a few months later to where I only have to drive an hour to get home during the night and do the same to drive back to the dock every third week...it happens. Sneak around with an expired inspection until I could afford it.

Now with folks who are idiotic with their vehicle and home purchases...they're probably the type that won't tip the pizza guy because the mortgage payment might not be made. I'm gonna have to roll by that neighborhood and see all the homes up for foreclosure one of these days.