Discuss Detroit » Archives - Beginning July 2006 » How do Metro Detroit families afford cars? « Previous Next »
Top of pageBottom of page

Miketoronto
Member
Username: Miketoronto

Post Number: 241
Registered: 07-2004
Posted From: 70.48.13.218
Posted on Friday, August 11, 2006 - 8:26 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I have a question. How does the average family in Metro Detroit afford cars for each person in the family?

I looked up the stats on family incomes, and many Detroit suburbs are not that different when it comes to family income, then most suburban areas. So how do they afford it?

How can you pay for a car for each kid, etc.
In other Metro areas kids take transit to go to college, etc or a night on the town. But in Metro Detroit every family member seems to have a car.

Just wondering how it all is afforded in the end.

Just wondering.

(Message edited by miketoronto on August 11, 2006)
Top of pageBottom of page

Paulmcall
Member
Username: Paulmcall

Post Number: 861
Registered: 05-2004
Posted From: 68.40.119.216
Posted on Friday, August 11, 2006 - 8:38 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If you had to take the bus all the time, you'd find a way to get a car at all costs.
Nothing like waiitng in the cold for a late bus.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 134
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 8:39 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It is because the suburban insurance rates are kept low, being subsidized by the red-lining that occurs in the city proper.

Most folks can scrape together the few hundred bucks for a barely running car, the question is usually insurance!

Of course I am just grand-standing. It is a good question because insurance rates are high for suburban teens as well. I have often wondered the same thing for the cars and houses combined. How does someone really afford two cars, insurance, and a 350 K plus house?
Top of pageBottom of page

Machoken
Member
Username: Machoken

Post Number: 1432
Registered: 10-2003
Posted From: 207.145.38.104
Posted on Friday, August 11, 2006 - 8:45 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Who says the parents are paying for the cars and insurance? This might be reckless speculation on my part, but I doubt the percentage of families who actually supply their brats with cars is more than about 30-40%. The others? If they want a car, they need to get a job. I doubt that ratio is significantly greater than other areas in the country.
Top of pageBottom of page

Wash_man
Member
Username: Wash_man

Post Number: 68
Registered: 05-2006
Posted From: 69.221.80.238
Posted on Friday, August 11, 2006 - 8:50 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This topic might be related to one on MSN today. It's about record debt in the US and how people spend like they are never going to have to pay it back.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 135
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 8:51 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Alright Machoken, let's suppose little billy or mary are working. What kind of jobs do you think they are getting and how much do you think they are getting paid?

If we are going to speculate, I would say that they can't come close to making the cost of owning, insuring, fueling, and maintaining a car.

Even if daddy or mommy got them a good part time gig at their respective work.

Discuss...
Top of pageBottom of page

Cafe
Member
Username: Cafe

Post Number: 1336
Registered: 10-2003
Posted From: 84.162.20.123
Posted on Friday, August 11, 2006 - 9:01 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

maybe if it were a Karman Ghia?



Private joke....don't freak
Top of pageBottom of page

Motorcitymayor2026
Member
Username: Motorcitymayor2026

Post Number: 1124
Registered: 10-2005
Posted From: 24.231.189.137
Posted on Friday, August 11, 2006 - 9:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Most kids here in Brighton are at least helped out when it comes to buying a car, however there are some that pay the entire thing.

For me, the cost of the car was split, I pay for gas and my parents for insurance.
Top of pageBottom of page

Machoken
Member
Username: Machoken

Post Number: 1434
Registered: 10-2003
Posted From: 207.145.38.104
Posted on Friday, August 11, 2006 - 9:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Teenagers can make upwards of $10 an hour waiting tables at a family restaurant, if they are good at it. I know, I did it 14 years ago. Working 15-20 hours a week makes for about $800 a month of income. That's plenty to afford not only an old clunker but even a decent new or used car. For those who choose to work closer to a minimum wage or fast food job, they should still be pulling in close to $500 a month, which gives them enough for the clunker. I'm assuming the family supplies them with essentials such as food and moderately priced clothing and school supplies (they can buy their own laptop if they want one). Anything else should be up to the kid.
Top of pageBottom of page

Bratt
Member
Username: Bratt

Post Number: 415
Registered: 01-2004
Posted From: 12.172.207.3
Posted on Friday, August 11, 2006 - 9:10 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

My daughter who is 17 has a car. But her daddy bought it and is paying the insurance. On the other hand, my neighbor who just turned 18 just got a 2006 Malibu.....who knows.
Top of pageBottom of page

Viziondetroit
Member
Username: Viziondetroit

Post Number: 687
Registered: 11-2003
Posted From: 65.42.23.2
Posted on Friday, August 11, 2006 - 9:20 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Dont forget that there are tons of leases on new cars less than $200 bucks a month... not every car is purchased.
Top of pageBottom of page

Mikeg
Member
Username: Mikeg

Post Number: 200
Registered: 12-2005
Posted From: 69.136.155.244
Posted on Friday, August 11, 2006 - 9:30 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Here is an on-line article about the negative personal savings rate that the American consumers have recently adopted. You need to click on the names of the three "experts" in the box at the end of the article to get their take on our spending habits.

I think that their comments directly answer Miketoronto's questions. The short version is that a lot of homeowner equity has been tapped which contributes to the "negative savings rate" (total personal spending exceeds earned income). The "boomer" generation tends to want to give their kids a debt-free start in life, so they spend on their kid's college and transportation needs by tapping home equity lines of credit, 401-k retirement accounts or selling stock for capital gains. The current generation of retirees have also saved money, which thay are passing on to their children in the form of gifts instead of waiting to give it to them via an inheritance. Finally, there is the group of consumers which likes to live dangerously by using multiple credit card accounts to fuel spending in excess of their earnings, without any equity or wealth to fall back on.

(Message edited by Mikeg on August 11, 2006)
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7693
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 9:34 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Standard practice in Metro Detroit - get into debt up to your ears. Given the recent low interest rates there is probably a whole lot of refinancing being done and equity taken out of homes.

I suspect that the average family in this region is in debt when you consider all their debts and assets. I know of way too many people that owe 120% or so of their homes value. A lot of people are setting themselves up for a whole lot of trouble.

There's a reason Rock Financial is doing so well around here.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 136
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 9:34 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Did you figure in taxes there? :-) I was trying not to go too into numbers this morning, but here it goes.

Your $800 looks more like $575 after taxes and your $500 looks more like $350 after taxes.

You have to take something off the top for spending money, because you know these kids aren't getting a paycheck and not spending any of it on themselves. And if they are getting their spending money from parents, only so they can put all of their check towards their car, then the car is really being subsidized anyway.

So, taking the higher rate, at $575 for a month, and taking out $75 a week our for spending money (which isn't even a pair of jeans for some of them) that takes it down to $275.

Gas at $30 a week is another $120, so thats's down to $155 a month.

We will leave out maintenance costs, but consider that if this is a car with no note on it, then there are going to be trips to the local Goodyear, but that maybe subsidized by parents again. But really you need to think this car is going to costs about $50 to $100 a month in maintenance, even if that is seen as one large lump sum when the transmission goes. Or the huge break job.

So with $155 a month they need to pay their insurance costs. Mom and Dad may put them on the Allstate Policy, but their low cost is again being subisidized by the parents, because the general policy costs may go up with them now driving in the house and having access to the other cars.

So if they budgeted perfectly, there is a possiblity that they might be able to do it.

But this is clearly not the slam dunk that you claim it to be.

And I took the time to do this to show how almost impossible it is for the average 18 year old to do this without the subsidizing from the parents, which many parents are not in a position to do. And the ones that are doing it, may be overextending themselves when they are.

:-)
Top of pageBottom of page

586luvfor313
Member
Username: 586luvfor313

Post Number: 8
Registered: 07-2006
Posted From: 209.64.87.68
Posted on Friday, August 11, 2006 - 9:41 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I think most young kids can afford cars these days. Look at the lease rates of cars. For $189 a month you can yourself a jeep on 2 year lease. At $200 a month and add another $200 a month for insurance ($2400 a year for insurance on very high side), I think most kids if they want to can afford a $400 car payment. When I bought my first car in 88, my Dodge Daytona cost me $219 a month and 125 a monmth for insurance. That was in 88 making $4.25 a hour.
Top of pageBottom of page

Machoken
Member
Username: Machoken

Post Number: 1435
Registered: 10-2003
Posted From: 207.145.38.104
Posted on Friday, August 11, 2006 - 9:46 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I think your analysis is fair Magnasco, although I contend that if a brat needs $75 a week spending money then they are spending too freely. You also make a good point about the parents subsidizing the insurance costs even if the brat pays for his itemized share of the insurance bill.

I wasn't really claiming it was a slam dunk (I guess I let my own experiences get in the way of my understanding of what is really happening out there. I tend to forget that I am not the average American. I think I am the average American, but I'm definitely not, and most of us here aren't either). Although, I do think a responsible parent should make their brat take the majority of the responsibility for paying the bills as you outline. That will teach them good spending habits, and they won't grow up to be the financial nincompoops that Jt1 described.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 137
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 9:55 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Thanks for the compliment on my analysis. :-)

You work with Detroit teenagers for a while and you realize how completely out of reach an automobile really is.

And to take it to the next level, why reliable public transportation is a necessity, not just some secondary issue.
Top of pageBottom of page

Metrodetguy
Member
Username: Metrodetguy

Post Number: 2814
Registered: 11-2003
Posted From: 70.237.162.213
Posted on Friday, August 11, 2006 - 10:29 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

OK after all the not so subtle suburban bashing...1/3 of families in Metro Detroit are connected to the auto industry (and can get the employee discount).
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7695
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 10:35 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Metro - Beyond the insurance comment where is all of the suburb bashing. Most of the comments seem to apply to both Detroit and suburban residents.

I think you may be reading an agenda into people's comments that simply aren't there.
Top of pageBottom of page

Metrodetguy
Member
Username: Metrodetguy

Post Number: 2816
Registered: 11-2003
Posted From: 70.237.162.213
Posted on Friday, August 11, 2006 - 10:38 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Likewise Jt1, you may be intentionally or unintentionally not reading through the lines.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7696
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 10:41 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

POssibly but tell me what I ma missing?
Top of pageBottom of page

Motorcitymayor2026
Member
Username: Motorcitymayor2026

Post Number: 1125
Registered: 10-2005
Posted From: 24.231.189.137
Posted on Friday, August 11, 2006 - 10:42 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

In statistics we did a survery of Brighton High School kids and the average wage was something like $7.50 an hour, and average spending per week (including gas for those whom pay it) was about $45...so a car can be bought after some saving
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 139
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 10:52 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I am not a statistics major or anything, but...

You are claiming an "average spending," meaning some didnt spend anything and some spent two to three times as much. The ones who spent nothing or very little arent getting a car and should not be included to bring down the average spending of those who "could afford" a car. The truth is that you could only use that "survey" if you asked for total of the spending money of those who did have a car.

Nice try, try again...
Top of pageBottom of page

Thnk2mch
Member
Username: Thnk2mch

Post Number: 234
Registered: 02-2006
Posted From: 71.65.11.152
Posted on Friday, August 11, 2006 - 10:55 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

O.K., some can, some can't
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1055
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 11:03 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I'm just amazed how everyone is acting like the kids whose parents do buy their kids a car and pay for insurance and gas have parents who are all in debt and the kids never work and are brats.
Top of pageBottom of page

Motorcitymayor2026
Member
Username: Motorcitymayor2026

Post Number: 1127
Registered: 10-2005
Posted From: 24.231.189.137
Posted on Friday, August 11, 2006 - 11:04 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Exactly. Some can, some cant.

I know many who have purchased the car and pay for all expenses themselves.

I know many who have had their parents buy brand new cars and cover all expenses.

I know many (including myself) who have split the costs with the parents.

The survey was not about a car, Magnasco. It was showing that many students could save money, to spend on a car or whatever else.
Top of pageBottom of page

Machoken
Member
Username: Machoken

Post Number: 1437
Registered: 10-2003
Posted From: 207.145.38.104
Posted on Friday, August 11, 2006 - 11:05 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

I'm just amazed how everyone is acting like the kids whose parents do buy their kids a car and pay for insurance and gas have parents who are all in debt and the kids never work and are brats.



I never said that. All kids are brats, regardless of whether or not their parents buy them everything.

(Message edited by machoken on August 11, 2006)
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1056
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 11:07 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

And it doesn't matter. Why should we care whose parents supply their children with which material goods as long as they can afford it? I mean, I know we can be quite the little judgmental group around here but isn't this taking it a little far?
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7699
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 11:08 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I wasn't talking about kids. I was talking about all the families that have 2 new SUVs, Cadillacs, etc.

How do so many middle income families afford their nice cars, boats, jetskis, etc.

According to my accountant I am in the top X% of the population and just do not understand where so many in this region can afford so many toys.

I also refuse to take out additional debt, max out investments, etc so I may be more conservative but it seems to me that many are borrowing every penny now for toys with no consideration of the ramifications.

A lot of kids work for their cars. Also figure that many (such as myslef) started saving for a car with the first job, paper route money, etc so they have years to amass some money for a car.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 140
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 11:08 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I do appreciate what you are saying Mr. Mayor, and what i am pointing out is that this is not like saving up for a stereo.

Cars cost a lot. Either a lot up front for payments and insurance, or a lot in maintenance and insurance, and this is a cost that is getting to be beyond the average american.

Especially the americans that we are wanting to get out and get to work and pull themselves up by their bootstraps.

Keep that in mind for the campaigning.

:-)
Top of pageBottom of page

Motorcitymayor2026
Member
Username: Motorcitymayor2026

Post Number: 1128
Registered: 10-2005
Posted From: 24.231.189.137
Posted on Friday, August 11, 2006 - 11:12 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well, I am sure that in Detroit, with the insurance costs being as massive as they are, it is even more difficult for kids to get cars, as the insurance costs would skyrocket even further...

I'll keep that in mind Magnasco :-)
Top of pageBottom of page

Machoken
Member
Username: Machoken

Post Number: 1438
Registered: 10-2003
Posted From: 207.145.38.104
Posted on Friday, August 11, 2006 - 11:12 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I really think Jt1 and I should get together for a beer. We seem to think alike. Although, it might be like spending time with my mirror...
Top of pageBottom of page

Pam
Member
Username: Pam

Post Number: 351
Registered: 11-2005
Posted From: 67.107.47.65
Posted on Friday, August 11, 2006 - 11:13 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

In my family the hand me down car from various relatives was common so it was already paid for.
Back when I was driving a hooptie, I saved on insurance by not having collision coverage.

As far as maintenance, some people drive cars that look like they don't spend any money in that area- smashed lights, driving on a donut spare, bad tie rods etc.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7701
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 11:36 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

Although, it might be like spending time with my mirror...




I hope you are more attractive than I. If not, my apologies.
Top of pageBottom of page

_sj_
Member
Username: _sj_

Post Number: 1463
Registered: 12-2003
Posted From: 69.220.230.150
Posted on Friday, August 11, 2006 - 11:57 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It is actaully pretty simple, Many people work for the car companies or have relatives who do which allows them to get a nice subsidy on many of the models including prices as low as $69 for some models.

The rest of the public pays anywhere from 100 to $300 more a month.
Top of pageBottom of page

Magnasco
Member
Username: Magnasco

Post Number: 142
Registered: 10-2003
Posted From: 71.159.22.100
Posted on Friday, August 11, 2006 - 12:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

That 100 to 300 number would be either for a lease or an entry level car if you were purchasing it. But I think you are right, that most people are leasing right now to keep the payments low.

This is definitely a new way of doing things compared to our parents who paid high payments for 3 to 5 years and then saw the real value when their car ran another 5 or 10 years with minimal investment.

Especially considering that many people are driving around $25 to $40 K vehicles which would have payments starting at $400 if they were buying them.

So what is being done with all of these leased cars? Sold as used cars on the lots?
Top of pageBottom of page

Miketoronto
Member
Username: Miketoronto

Post Number: 242
Registered: 07-2004
Posted From: 207.61.38.86
Posted on Friday, August 11, 2006 - 12:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I guess its just a different culture then here. Here in Toronto most teens can afford the car payments, but we choose not to get cars, and just rely on transit. And we used our money on other things like trips and going out.

It just seems like Metro Detroit teens and students would have more money to spend on other thigns, if they did not have to worry about car payments.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7706
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 12:58 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

No mass transit doesn't make it a fair comparison.
Top of pageBottom of page

Patrick
Member
Username: Patrick

Post Number: 3542
Registered: 10-2003
Posted From: 65.222.10.3
Posted on Friday, August 11, 2006 - 1:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I want to know how people in very low-income areas can afford to drive Escalades and 300s along with Navigators.
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1057
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 1:01 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah, I'm not sure about your argument because I'm pretty sure that lots of folks who have Mass Transit at their disposal still own cars. Ever try finding a parking spot in Washington DC or Chicago? Those cars didn't get there themselves.
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1058
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 1:04 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Patrick, you'll hear lots of answers to that one including predatory lenders (cough.. Rock Financial) and credit card debt.

But honestly, I think the answer to that is that there's lots of folks who don't mind living in the bad neighborhood with the roof that needs to be repaired if they have a hot car. It's what teh consumer has chosen to spend his or her own money on.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7708
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 1:07 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Susan - I agree and disagree. The difference is that areas with mass transit give people options. Obviously people still own cars but have a much easier time functioning without one than in Metro Detroit.
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1059
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 1:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I wasn't arguing that it wasn't easier, it obviously is to not own a car if you have effective mass transit. I was pointing out is that mass transit does not necessarily negate car ownership.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7709
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 1:20 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Gotcha. I missed your point a little.
Top of pageBottom of page

Susanarosa
Member
Username: Susanarosa

Post Number: 1060
Registered: 11-2003
Posted From: 208.39.170.78
Posted on Friday, August 11, 2006 - 1:23 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It's Friday, you're excused.
Top of pageBottom of page

Jt1
Member
Username: Jt1

Post Number: 7710
Registered: 10-2003
Posted From: 198.208.159.19
Posted on Friday, August 11, 2006 - 1:27 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

SCrew Friday - I'm stupid all week.
Top of pageBottom of page

_sj_
Member
Username: _sj_

Post Number: 1464
Registered: 12-2003
Posted From: 69.220.230.150
Posted on Friday, August 11, 2006 - 1:41 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

So what is being done with all of these leased cars? Sold as used cars on the lots?




They go on auction.
Top of pageBottom of page

Atl_runner
Member
Username: Atl_runner

Post Number: 1947
Registered: 10-2003
Posted From: 198.151.12.10
Posted on Friday, August 11, 2006 - 2:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Susanarosa, you're a welcome voice of reason on this thread. It's amazing the arrogance some people have when assuming anothers financial position. People HAVE to make payments. Otherwise, the stuff goes away. Bankruptcy is not like it used to be. Debt does not just go away anymore. Folks may live above their means for a period, but just like the economy or stock market, there always comes a time for correction.
Top of pageBottom of page

Dougw
Member
Username: Dougw

Post Number: 1275
Registered: 11-2003
Posted From: 136.1.1.154
Posted on Friday, August 11, 2006 - 3:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)


quote:

I have a question. How does the average family in Metro Detroit afford cars for each person in the family?



One other factor which hasn't been mentioned... housing in Metro Detroit is generally cheaper than most other large metro areas, so there's a bit more money available to spend on cars.

(Not saying that this is necessarily a good thing.)
Top of pageBottom of page

Detroitej72
Member
Username: Detroitej72

Post Number: 77
Registered: 05-2006
Posted From: 66.184.3.44
Posted on Friday, August 11, 2006 - 3:44 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:
I have a question. How does the average family in Metro Detroit afford cars for each person in the family?

______________________________ ___________________

It seems that with the high forclosure on houses in the metro area that people have over-extended their credit. Now with a lousey ecomnomy its catching up with their lack of living within their means.
Top of pageBottom of page

Tayshaun22
Member
Username: Tayshaun22

Post Number: 299
Registered: 02-2005
Posted From: 69.14.101.116
Posted on Friday, August 11, 2006 - 9:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

When I turned 16, mom was ready for a new car. I got hers that was probably worth a grand. I paid for insurance and gas. Last January, I bought a Ranger. Put down 1/3 of it with money I had saved and I'm paying off the rest with money I'm earning. Paying for a car is easy when you're efficient with your money.
Top of pageBottom of page

Lilpup
Member
Username: Lilpup

Post Number: 1253
Registered: 06-2004
Posted From: 69.130.18.100
Posted on Friday, August 11, 2006 - 9:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

especially easy if you buy used
Top of pageBottom of page

Detroitej72
Member
Username: Detroitej72

Post Number: 84
Registered: 05-2006
Posted From: 66.184.3.44
Posted on Friday, August 11, 2006 - 9:42 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Congrads to you, Tayshaun22. You are living proff that he American Dream can still come true.
Top of pageBottom of page

Ordinary
Member
Username: Ordinary

Post Number: 33
Registered: 06-2006
Posted From: 68.252.13.23
Posted on Friday, August 11, 2006 - 10:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Miketoronto,
I've always maintained that it's a cruel trap here in the motor city. You gotta get a car so you can get to work, and you gotta get a job so you can afford a car. It's a crock of shit is what it is. If I were a conspiracy nut I'd say it was a conspiracy. Somehow we all got talked into the idea that you had to have a new car every other year. I'm not buying it.
For my family the answer to your question is called junk. Nowadays they're called hoopties. I own junk. No payments. The maintenance sucks but it's cheaper than the payments. My kids drive junk. They pay the gas and maintenance. I pay the insurance. Okay I confess that I have a payment on a 2002 model that I bought used but it's manageable.
Top of pageBottom of page

Alexei289
Member
Username: Alexei289

Post Number: 1206
Registered: 11-2004
Posted From: 68.61.183.223
Posted on Friday, August 11, 2006 - 11:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I bought my own, paid my own insurance...


My car had to be paid off for me to have plpd on it.. full coverage for me when i got my first car was 4500$ a year... where plpd was like 1200...

i had a 95 grand am that was in 3 previous major accidents..

got me to my roofing job...
Top of pageBottom of page

Superduperman
Member
Username: Superduperman

Post Number: 119
Registered: 01-2005
Posted From: 69.242.221.36
Posted on Saturday, August 12, 2006 - 12:10 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Alot of people use straw purchasers to get a new car,alot of people in detroit get their cars in their grandparents name. Also there are people who hav excellent credit and go and get several brand new cars in a month(all in their name) and lease them out to other people and tack on a few hundred to the car note and make money like that.
Top of pageBottom of page

Futurecity
Member
Username: Futurecity

Post Number: 316
Registered: 05-2005
Posted From: 69.213.205.133
Posted on Saturday, August 12, 2006 - 2:08 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I wonder what day of the year "Car Freedom Day" is.

You always hear about Tax Freedom Day - the day of each year that we have earned enough to cover all of the taxes that we pay each year and in theory start working for ourselves. For 2006 it's April 26.

Add up all the bullshit crap that we have to pay each year for our cars - payments, insurance, repairs, gas, etc. and we see that it's a hefty sum. How many days of the year are we working so we can support our cars? It's probably as much as housing in many cases. It's totally insane if you think about it. We are slaves to a metal box.
Top of pageBottom of page

Ron
Member
Username: Ron

Post Number: 262
Registered: 03-2006
Posted From: 66.174.92.166
Posted on Saturday, August 12, 2006 - 1:20 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I am a bankruptcy attorney, and many people live beyond their means, which keeps me in business. That is how so many people are able to apparently "afford" all they have. In reality, they cannot. I'm not saying this is always true, but quite frequently, it is.

Patrick, many of those you see driving around in caddys and 300s are actually living in their mother's basement. I had plenty of friends growing up who did that. Kind of seems backwards to me, but hey, what do I know. I drive a '98 Taurus. (My experience as a bankruptcy attorney has scared me away from ever buying a new car, and never leasing a car).

Nonetheless, we definitely need mass transportation as a viable alternative to everyone owning a car; but the car culture is so ingrained in this region that even that wouldn't prevent many from buying cars.

Add Your Message Here
Posting is currently disabled in this topic. Contact your discussion moderator for more information.