Quote:
Originally Posted by Nomadmax
In large part, car sales tactics are a result of people buying cars they can't afford. And, are upside down on their worn out trade. The only thing the sales people CAN do is talk payments. What's worse, the payment system usually induces customers into adding option$ to the vehicle they can't afford and bury themselves.
Vehicle prices would be lower than they are now if everybody had to hand over an envelope of cash for whatever they wanted to drive off with. Seeing real money leave their hands is a lot different than xxx.xx per month. I'm not a car salesman and have never been one but, I once had a job where I bought hundreds of cars. When you talk about one thing, the OTD price, it's nearly impossible to go wrong. Car sales people get a bad rap because most people go into the dealership financially unprepared to purchase the vehicle they think they "deserve". If you want honesty from sales personnel, be prepared to hear "Financially, you need this deal like you need another hole in your head. Drive what you have until you have the financial wherewithal to PAY for what you want".
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Most people pay their auto loans on time, and eliminating auto financing would decrease demand for automobiles, but would be unlikely to be welfare-improving.