Cars made by the Detroit Big Three carmakers (is there still a Detroit Big Three anymore?) tend not to be reliable.
I have no idea why this is true. I suspect that it has a lot to do with the United Auto Workers union resisting modernization.
Or maybe antiquated ideas about making things that are disposable so you can sell more of them.
Honda, Toyota, Subaru tend to be reliable. I have handled a couple of bankruptcies for Toyota drivers, not often Honda, never yet Subaru, a few Kias.
I have never handled a bankruptcy for someone who drove an Acura or a Lexus, either.
Several with Mercedes but I don't think Mercedes are all that reliable.
So my thought is that maybe people who drive unreliable cars are more likely to go broke, or maybe people who drive unreliable cars don't know how save money. A car is expensive, so it's like an investment, even though it depreciates, some depreciate slower than others.
Similarly with houses -- even though they depreciate, some depreciate slower than others, and you need a place to live anyway.
I am being a little hard on some of my clients. I do have clients who have almost no credit card debt, used to have a good credit rating, used credit wisely, but lost their job, or got a divorce, or they got injured and needed expensive health care, or their spouse died. This does happen.
Those people aren't going to get out the pitchforks, either. Bad things just happen sometimes. |
