Understanding the California Red Tag Law and How It Affects Auto Loans

Last year the government officials in California passed the “red tag law” which has had a significant affect on the used cars market that consumers can benefit from. For those who are familiar with the logistics of this new law I’ll explain it simply. In its basic understanding the California red tag law requires dealers to place a red sticker on any vehicle that has been salvaged, in a junk yard, or sustained any flood damage.

These vehicles also have to be registered into a federal database that is also open to the public. With this type of law in affect it helps make people who are looking to buy a pre-owned vehicle much more comfortable about acquiring a reliable automobile. There are also people who can get bad credit car loans with the California red tag law as they will be more confident that the vehicle will last throughout the duration of the loan.

Applying for Used Car Loans in California

Most people can still qualify for auto financing in California even with a poor credit score, but very few dealers would be up for the task as they had too much to lose. Before this law if a used car dealer allowed someone to buy and finance a vehicle that had flood damage, and it broke down after a month they would be out of an investment as most lemon laws don’t require you to continue making payments.

Now that dealers can provide more reliable vehicles it will be easier to qualify for bad credit used car loans, since more credit lenders will be more relaxed. It also helps that another part of this new California law allows dealerships to charge the same fees for leases and actual sold vehicles applications. Originally car lots would only charge $45 for leases and add another $10 if you were going to make a full purchase; however, bother prices have shot up to $80 which has made many dealers happy.

The only true downside of auto financing in California under the red tag law is that it has yet to be applied nationwide. It is rumored the United States government will be discussing this, but in order for it to actually go into affect they will need to get the dealerships on board as well. If they are able to accomplish this, we could see a lot more people feeling comfortable about buying used cars and applying for bad credit auto loans.…

Analysis of Herbert J Gan’s "The Uses of Poverty"

In the article entitled “The Uses of Poverty: The Poor Pay All,” sociologist Herbert J. Gans discusses the strange alliance between the poor and the wealthy in American society. He states that the underprivileged in essence have kept several vocations in existence such as social work, criminology, and journalism. These vocations serve the double pretense of aiding the less fortunate and protecting society from these same individuals. He compares his analogy with that of Richard K. Merton, who applied the functional analysis theology to explain the prolonged existence of the political machine in urban areas.

Mr. Merton’s reasoning was that the political machine continued to exist because it served several positive functions in society. Mr. Gans applies this same logic to the existence of poverty in a society that had so much material wealth and concluded that poverty had 13 functions in society that was beneficial to non-poor members. They include: making sure that the menial work tasks of society will be taken care of, the creation of jobs that provide aid for the poor, and the existence of the poor keeps the aristocracy busy with charitable works, thus demonstrating charity to the less fortunate and superiority over the elites who chose to spend their free time making more money. He also give several alternatives to poverty such as redistribution of the wealth in society, putting everyone on a more even playing field, but ultimately concluded that poverty will continue to exist because disturbing the unequal balance between the poor and the wealthy in society would prove to be dysfunctional for the affluent and that will not happen.

In a hierarchical society such as in America, there will always be someone on the low end of the totem pole.…