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[quote=Anonymous]https://en.wikipedia.org/wiki/Ellen_Zentner

If you want to follow someone interesting listen to Ellen Zentner. A really amaxing economist. I saw her speak in 2009 and she told us something that sum up the American Consumer.

Back in the Financial Crisis GM started Employee Pricing on cars. And they started zero percent down and zero percent financing at same time. Some cars were $7,500 off MSRP with zero percent financing.

Ellen said on paper it should have been an amazing win for consumers on lower income.

She said a cheap Chevy Cruze model in 2009 had a MSRP of around $17,500 and with $3,500 off  could be had for $14,000 and with a five year zero percent loan and zero down the car was an amazing opportunity for people to get into a base model brand new car at a crazy low payment. She expected tons to sell.

Instead consumers jumped on Escalades, Yukon Denalis, etc which was like up to $68,000 with up to $13,000 off so cost $55,000.

Their minds were like I am getting more off the Escalade and with zero percent interest and zero down the bigger the loan the more savings.

She was shocked these people did not seem to understand if they lost their job the day after buying the Escalade they still would owe $55,000 which was $41,000 more than the Chevy Cruze.

In the end people had much larger loans then in 2007 when they had to pay interest, and make a downpayment.          [/quote]

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