Unemployed dumping car leases

[Donnachaidh]

http://economy.ocregister.com/2010/06/28/unemployed-dumping-car-leases/35647/

The unemployed are walking away from their car leases in droves as more laid-off workers see their jobless benefits cut off, reports LeaseTrader.com.

The company, which helps match up people who want out of their car leases with those looking for a shorter-term lease, said it expects to process 7.3% more listings in June from people whose unemployment benefits have ended or are about to end.

"Unemployment benefits have been keeping millions of Americans afloat since the recession began," said Sergio Stiberman, chief executive of LeaseTrader.com. "When the clock runs out on benefits, people still jobless look to find ways of further cutting their bills. The ability to transfer a car lease contract can save a person more than $500 each month while keeping their credit intact."

The company said the majority of its lease listings are in California and other high-unemployment states including Florida, Arizona, Nevada and Michigan. California's unemployment was 12.4% in May, third highest in the nation.

More at the link ---

[msongs]

1. if dems only knew about effective PR, they could use all this to advantage nt

[Warpy]

2. Unemployed people not paying out money they don't have!

Good heavens, who would have thought they'd do such a thing?

It looks like a hell of a lot of Republican businessmen out there are going to have to take a lot of very hard kicks to the wallet before they finally twig to what's going on out there.

They'll get them, too. The number of people looking for leases, even short term leases, is shrinking rapidly.

[SunnySong]

3. If I was unemployed I would walk away from a car lease as well.

Back (long before the current crisis) I used to review forclosure files. It amazed me that they almost always had two leases for $800 total... It's as if you could predict who would default (this was Clinton years pre-crisis)

[corpseratemedia]

4. dumbass republicans should have figured out the ripple effect on the economy

not paying car leases, credit cards, etc...

[FiveGoodMen]

5. All part of their plan

Next:

1) Debtors' Prisons

2) Cheap prison labor (slavery actually)

3) Mission Accomplished.

[obxhead]

10. Prison labor is anything but cheap.

Here in our local area it costs $250 a day to maintain the facilities and guards for a single prisoner in the local county jail. State prisons are at a much higher rate.

I guess it could be argued that a corporations rate of payout for any goods produced be very cheap to them. Overall costs of using prisoners for labor as opposed to minimum wage employees is a very large margin.

[FiveGoodMen]

13. I don't have any figures to use in arguing the point

You may be right.

For what it's worth, though, your assertion flys in the face of all that I've heard/read up to this point.

[TheDebbieDee]

6. For some reason, repukes think that only black people and brown

people are drawing unemployment! The repukes are trying to equate unemployment with welfare and EVERYBODY knows that only minorities in this country get welfare.

[Rosa Luxemburg]

7. Where is the rage about the end of unemployment benefits?

[girl gone mad]

8. Sorry, we save our rage for progressives..

like Russ Feingold.

[SoCalDem]

9. They really have no other choice, though

Once there is no more income, there's no money to pay the lease.

[tech9413]

11. I never leased a car, it seemed like a stupid idea.

It always seemed to make more sense to buy the damned thing so at least you have something when you're done paying for it. My ex used to lease her cars and I guess it makes sense if you only keep them for a couple years. For me, my 12 y/o Honda serves me pretty well. Cash off the lot is a great way to buy a car.
If I couldn't do that, I'd rather pay on the loan than pay on a lease where I had nothing once I finished paying.
For those that find leasing a good option, I'd advise walking away from a lease if your financial situation changed. What do you have to lose? We're not quite to the point of debtors prison.

[Lance_Boyle]

14. Leases are for the 'new car every 2 years' set

and they're not ALL stinkin' rich. But they all want to look that way...

[FarCenter]

12. buy for cash, screw the bankers