Main Street America angry over credit crisis (Guy doesn't have enough to buy bigger truck)

http://news.google.com ^ | Tue Sep 30, 2008 3:20pm EDT | By Andrea Hopkins

[Maelstorm]

Auto salesman Ryan Thomas is watching the credit crisis hit Main Street America. On Monday, as Congress rejected a bailout plan and stock markets plummeted, Thomas had to turn away a customer with $3,000 in his hand who wanted to buy a new vehicle.

"He wanted to get into a bigger truck for his job, he was a union worker," Thomas said. But the man still owed money on the vehicle he was trading in, so his loan request was denied.

"He didn't have enough money down. He would have needed about $5,500 down and he had $3,000. A year ago that was a piece of cake," Thomas said.

[Maelstorm]

Oh my does this mean that people will actually not be able to get easy credit when they already have too much debt? I'm sure the union worker can save up the 5,500 and buy his bigger truck. We need more fiscal responsibility in Washington and on Mainstreet. Car salesmen are not the place I'd be going to for good examples. If you can't get a loan for a new car, well folks there are used cars. I remember how it was to be tight I paid $2,000 for two Plymouth horizons when my wife and I first married. We didn't have the money for a new car so we didn't buy one. The last thing people should be doing is spending money they don't have to make ripoff artists rich. We know that the American people have way too much credit already. So grow up America, learn to live within your means. Government and Mainstreet needs to stop counting on a free or easy lunch.

[Harley]

Gee does this mean that car saleman can no longer say, “What do I have to do to get you in this vehicle today?”

[dinodino]

Aww, Mr. I Can’t Afford It Guy can’t buy a new truck? TFB.

[TheWasteLand]

Yeah, it sure stinks that people with bad credit can’t get risky loans anymore - after all, what problem could that possibly create? /s

[traditional1]

"He wanted to get into a bigger truck for his job, he was a union worker,"

I guess if it was a non-union guy, it would NOT have been a story?

[WatchYourself]

Duh, that’s why we are in this crisis. because a year ago it “was a piece of cake.”

[ikka]

He wanted to get into a bigger truck for his job, he was a union worker," Thomas said. But the man still owed money on the vehicle he was trading in, so his loan request was denied.

So the guy was upside down on the loan as it is, and wanted to piggyback the existing loan on top of the new car loan. No surprise that he was denied.

[Ruy Dias de Bivar]

***He would have needed about $5,500 down and he had $3,000. A year ago that was a piece of cake,” Thomas said.***

Oh for heaven sake! I remember when the ONLY place to get a car loan was the local bank. You had to have 1/3 down, and you had 24 months to pay it off IF it was a new auto. If a USED auto you had 18 months.

[Dallas59]

Reminds me of the movie...

[umgud]

I paid $36K less than 2 years ago for a new truck. With all the deals out ther, I can buy a better one right now for $29K, but the downside is that they will only give me $12K for mine. It’s a good thing I don’t need a new truck and a better deal that mine is paid off.

[so_real]

How can this possibly be spun as a “bad thing”?

[HarleyD]

LOL!!!! I get mail almost daily begging me to trade up my current SUV into a higher loan vehicle. Given the state of the car industry I don’t buy this for a minute.

[Fred]

Oh yeah, must have needed a new truck that was capable of towing his new bass boat....see photo below

[manc]

I’m 39 and grew up with older foster parent who had no money.
I remember the debt collectors at the door standing there in their suits and they were massive.

Well after getting away and joining the military I learned something

If I wanted something then I would save to buy it or I would get something which I knew I could afford.

My house is not big and my cars are not luxury cars but I do have money for my bills and I do have money for my kids.

Now what on earth has happened to self responsibility?
Why do some think they should be in a luxury car and have a Mcmansion but only to find they are struggling to pay for them.
seems looking good and struggling is the way for some now

[cripplecreek]

"He didn't have enough money down. He would have needed about $5,500 down and he had $3,000.

Maybe his union should give him the other 2 grand. I've long since given up on new vehicles simply because I can't afford to waste my money on them. Life goes on.

[Popman]

He would have needed about $5,500 down and he had $3,000

The one and only reason he needed more down payment is to be able to meet the percent requirement of the monthly payment verses income minus liabilities.

With only 3K down he could not get the monthly payment low enough to qualify for the loan.

[afnamvet]

Pay down the credit cards then tear them up save one. The remaining card is for EMERGENCIES only. Pay it off monthly or as soon as possible.

[Popman]

"There has been a mad rush back to the basics and if you don't have the necessary documentation you cannot get a loan," Zugheri said. But he noted that not all credit is dead.

"If you have decent credit, a verifiable income and want a loan for under $400,000 it's business as usual."

Wait a minute here. I thought the sky was falling

[gridlock]

One idiot can’t get a loan for a bigger truck.

OHMYGOD! CRISIS!!!

We better fork over $700,000,000,000.00 in free taxpayer money immediately!

[mgstarr]

Unfortunately it seems though too much of our economic growth has been through people spending too much money on things they really could not ultimately afford.