Getting rid of that SUV

[Arif]

Saw this on MSN about how people got rid of their SUVs so they wouldn't be "upside down."

Vehicle arson has had a long and occasionally humorous track record over the years. In Texas, a car salesman was arrested after offering his customers what he called a "rotisserie program." He would have their cars torched; then, after they collected on the insurance, he sold them a new car. In another part of the state, two students were arrested after they torched their high school teacher's car in exchange for passing grades.

Heres the entire article:
http://money.cnn.edmunds.com/advice/specialreports/articles/115584/article.html

 

[Craig]

Think "gap insurance" on this one ... otherwise, doesn't work quite so well.

 

[cute fuzzy bunny]

Hmmm...one of my neighbors just had his truck stolen out of his driveway, keys in it...

 

[maddythebeagle]

People become desperate during financial hardship," Rowe observed. "It's not because they are bad people; they just get pushed into a financial corner and they make poor decisions. There are ways out of it — but people want a quick fix."

In my book, doing something like this makes people "bad" .

 

[2B]

The value of used SUVs have fallen based on all of the methods used by insurance companies. The insurance company will only reimburse a policy holder for the "value" which is almost always less than what it would bring in a sale. By torching their cars, they not only commit a crime when filing an insurance claim but they are reducing the amount of money they would get if they sold it outright.

Dumb and Dumber must have thought this up.

 

[Craig]

2B, having gap insurance fixes that little problem. Not honest, but unless you're caught, it can work.

And, I would agree, these people become "bad" with such "solutions" ... known as "moral hazard" in the business.