Agonizing (Yawn) Choices
I got this press release the other day:
Re: SoCal Resident Gives Up Car To Get a Home LoanHi Alkon, it's Evan Sneider from LeaseTrader, hope you're having a good day. I've got an interesting customer experience in the LA area that deals with the current economic slowdown. I thought you might be able to use in a story you're planning. With the GDP numbers coming out yesterday, they point toward a recession and is a problem everyone is getting ready to face.
I recently had a conversation with one of our customers in the Los Angeles area. She is in the market to purchase a home within the next few months. With the slow economy and credit crunch affecting every lender, she decided to get rid of her expensive car lease, and consolidate cars with her husband. They decided to position themselves with less liability in order to safely secure a home loan. Her husband is driving a motorcycle for financial issues and their joint car is for chauffeuring children around. This will allow them to put down more money on their next home purchase.
She is more than happy to talk about her situation if a reporter wanted to talk to her about it.
My response:
Um...or they could just rent. We all make choices. I rent a house and drive to the grocery store instead of riding my bicycle. Perhaps I'm not getting it. Is this supposed to be some agonizing, Solomonic choice?
(I forgot to sign my e-mail "Alkon," like "Hi Alkon." Smooth, Evan!)
Purchasing a home is an investment...renting is not. Everything is a coice...so if this woman wants to cut back on driving in order to own - I say it's a great move. The house will only gain in value, whereas the car is a loss from the moment you drive it off the lot.
Not sure why this woman and Evan would think that this is news worthy though...I agree with Amy...YAWWWWn
WhyRent? at November 6, 2008 6:43 AM
"The house will only gain in value, whereas the car is a loss from the moment you drive it off the lot."
The only thing a home is is the guarenteed portion you're putting into equity each month. All those homes that "Gained Value" is one of the reasons people are backwards on their mortgage.
If you don't have a problem saving money, renting can be a better option.
Scott at November 6, 2008 7:08 AM
Are people really that starved for attention? Oh, well. I could see this being a good time to buy, since prices are down, but only if you can afford it. However, prices could go down even more, and one could lose quite a bit...
I wouldn't want to broadcast my financial situation (good or bad) to the world. I don't get people that do that.
ahw at November 6, 2008 7:54 AM
Yeah, agonizing choices. "In order to put food on the table for my children, and live in a nice mansion up in the hills, I can only lease one Hummer instead of two!"
Cousin Dave at November 6, 2008 10:46 AM
If you don't have a problem saving money, renting can be a better option.
This is one of the things that is maddening about the housing bubble that finally burst. There was a time when a house payment could work out to be lower than rents. I could have bought a house back in MI, with a payment that was a hundred bucks less than my rent was - and I lived in a duplex. But I didn't have a down payment or reasonable credit.
On topic, I'd be far more impressed if she was giving up the lease on both vehicles and buying a used one that would have lower insurance and lower (if any) payments.
DuWayne at November 6, 2008 1:25 PM
The poor dear, she's suffering so. People in Africa are getting slaughtered by the score, women in the Middle East are being stoned, Hurricane evacuees are still recovering from losing everything they owned, but her husband has to commute on a motorcycle. Shit's tough all over isn't it.
Elle at November 6, 2008 1:57 PM
Aw, Amy (oh, pardon me, Alkon), c'mon. Americans are supposed to get whatever they want, regardless of cost and whether they can afford it, RIGHT HERE, RIGHT NOW. It's right there in the Constitution. You mean people should actually plan, budget, and make hard choices, making the best of the hand they're dealt? What are you, a Commie?!
P.S. Yes, that was sarcasm!
Monica at November 7, 2008 11:39 AM
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