LAST AUTO NEWS – FOR MOST, IT’S NOW NEARLY IMPOSSIBLE TO QUALIFY FOR A CAR LOAN
Last Auto News –
Speculating is growing that the deepening acclaim crisis may affirmation addition casualty: automakers. Bloomberg reports, “U.S. auto sales were hobbled in the aboriginal bisected as gasoline prices jumped to almanac highs. Now, a banking crisis that pushed Lehman Brothers Holdings Inc. into defalcation has apathetic new-vehicle accommodation agreement and may added abase sales.” GM’s sales are down 18 percent through August. Ford’s are down 15 percent, Chrysler’s a whopping 24 percent..
The better culprit abaft the bead isn’t gas prices anymore — it’s admission to credit. “Christopher Dodd (D-Conn.) administrator of the U.S. Senate Banking Committee, told Bloomberg Television bygone that agitation in the banking industry agency ‘credit does not exist’ appropriate now.” I was told today you accept to accept a FICO account of 720 to authorize for a car loan,’ Dodd said. ‘The furnishings of this could be huge.’
WalletPop adds, “General Motors business arch Mark LaNeve, says that GM abandoned is accident up to 12,000 sales a ages because of acclaim problems. Chrysler and Ford are adversity as well, admitting their numbers arise to be lower.”
The Los Angeles Times adds, ” Whereas absorption ante on cars loans, acclaim cards and some home mortgages are in fact down from a year ago, lending standards accept developed so bound that alone humans with the accomplished acclaim array can get the loans. In some cases, even they accept been angry down.”
Mike Jackson, CEO of AutoNation — the world’ better abettor of car dealerships — told the Detroit Free Press that “many dealerships will go out of business or consolidate as a aftereffect of the boxy bread-and-butter climate. Long-term, this shakeup has had to appear — it’s continued overdue. But it’s traveling to be aching and disruptive, even for the survivors.”
The abbreviating acclaim bazaar is banishment automakers to lower their already low sales expectations. While a lot of had predicted “2008 U.S. ablaze cars sales to be amid 14 actor and 14.5 actor units, down from 16.15 units in 2007,” Ford has now bargain its expectations, according to Reuters. Ford Arch Sales Analyst George Pipas told reporters the automaker was “setting our second-half run amount at 13 actor units,” a low not apparent back the recession of the aboriginal 1990′s.
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