A Cuban TikTok user, known as @oscarmanuelgarcia52, has stirred up a conversation among his followers with a video that satirizes the behavior of some recent arrivals to the United States. In the video, he mocks those who flaunt their acquisitions and high living standards, despite many of these items being financed.
"Hey, don't be fooled anymore. If they've only been here in the U.S. for a short time and are showing off a fat chain, an iPhone 15, or a new car, it's all financed. The guy from Vedado, the cousin from Marianao, it's all financed, it's a fantasy (...) it doesn't exist yet. You're paying for something in installments that isn't yours yet; you put down an initial payment, and they have your new toy there, but it's not yours yet. Don't be fooled... people here aren't millionaires, none of that," the user expressed in his video.
The reactions were swift, with comments ranging from acceptance and laughter to criticism. "This guy discovered warm water"; "It's better to pay than to dream on a corner"; "Everything here is paid in installments, or do you buy in cash?"; "They get the chains, make the first two payments, and then don't pay anymore."
In response to the reactions, the video creator clarified his intention with the post: "The idea of the video is for those who don't live here to understand that we're not millionaires. Also, it's all in good fun, don't take it the wrong way."
Understanding the Reality of Financed Purchases in the U.S.
This section aims to clarify common questions and misconceptions about the financing culture in the United States, as highlighted in the viral TikTok video.
Why do people finance purchases in the U.S.?
Financing allows individuals to buy expensive items, such as cars and electronics, by spreading the cost over time. This makes these items more accessible to people who may not have the full amount upfront.
Is it common to finance items in the U.S.?
Yes, it is very common. Many Americans finance big-ticket items like cars, homes, and even phones to manage their financial resources better.
Are financed items fully owned by the buyer?
No, financed items are not fully owned until the buyer completes all the payments. Until then, the lender retains a financial interest in the item.
What happens if someone fails to make payments on financed items?
If payments are missed, the lender can repossess the item, and it can negatively impact the buyer's credit score, making it harder to obtain financing in the future.