Another Car Question

[Tom]

Mikey, after reading your post, I got to thinking. A lot of (not the entire reason) the reason *I* think were even in this recession right now, and why folks are so broke is the whole housing boom of a few years ago. Follow me here on my crazy theory: Variable interest rate loans and other programs made it easier for young families to purchase homes, a godo thing right? Not necessarily. A LOT of those folks bought homes they couldn't afford, the variable interest rates lured many in and then they skyrocketed the rates, and being a society that generally lives well above their means anyway, what goes up must come down, and these folkks crashed financially and crashed hard, defaulting on their mortgages, and the houses going into foreclosure. Stockton, California is (or at least was for the longest time) hung with the dubious "honor" of being the foreclosure capital of the country. Foreclosed houses are EVERYWHERE here, can't throw a rock without hitting one. Folks simply bought more than they could afford. I am afriad this whole cash for clunkers deal is doing the same thing; promoting spending above peoples means. I think the idea was great, I applud the Obama Administration for the idea, but I just hope it isn't a smaller scale repeat of the housing boom. I thought about trading in the "G-Ride" (Granny mobile 1992 Chrysler New Yorker) as it certainly qualified, but I decided not to. I LIKE not having a car payment, being self employed in a rough economy helped the decision too, and bottom line, I am having a hard enough time making ends meet without adding a 3 or 4 hundred dollar car payment to the mix, not to mention higher insurance. So again, keep the Honda you have, it sounds like a great car. The neighbor, with all due respect to him, sounds like a tool. One of those wasteful Starbucks chugging, gotta have the newest gadget, Hummer driving, soccer game going, Brooks brothers wearing, snobbish, greedy people that "oh, the car is 2 years old, ew, time to junk it and buy a new one" mentality people that *in my opinion* are part of the problem with consumerism today. My sister is the same way, got her new Grand Prix repossed recently illegally (chase Financial, i could write a book on those clowns, long story) because the military had my Brotehr In Law's pay all screwed up while he was deployed, and frankly, she lives WAY above her means. My sister offered to introduce her to a friend that has a used car lot, and was willing to give her a great deal, she told us all "Ew, those cars are used, other people already have driven them".