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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
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Replying to: euphonium (Dec 13, 2008 11:32 am) As you noted such a 50% discount on new vehicles would destroy the value of the USED car market....including all the used cars that are currently being driven by these potential buyers. If you've had your vehicle 2-3 years and like most owners you are not quite breakeven vs the loan balance if you reduce the value of what you're driving by $5000 - $10000 then you'll never qualify for another loan until the current one is paid in full. Sell a brand spanking new Fusion for $12000??? That means that a 2006 with about 50K on the clock will be worth about $5000 yet your loan on it would still be ~ $12000+. The typical buyer, the one who's being excluded from the market today is not well off. They don't have positive equity. They don't have any cashdown. They don't have great credit histories. This is the bread and butter buyer who buys every 2-4 years and the one that that the finance companies are currently discouraging from buying again. Adding a worsend trade velue to the equation and that effectively excludes them for another 3-4 years.
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Replying to: kdhspyder (Dec 15, 2008 5:27 am) Hi all: ---------------------------Give each adult a voucher of $10,000.00 to purchase a NEW American vehicle from either GM, Chrysler or Ford. These "vouchers" would have NO "cash value" outside of a vehicle purchase, and could only be used during a NEW vehicle purchase. ----(No used vehicles.) ---- This action would stimulate the economy from the bottom up, and get the American vehicle manufacturers a larger percentage of the "market share!" That might be better than giving loans to D3. Move some metal and keep the plants going. I won't be buying one but I'd rather have my tax dollars go that way than just go into a sink hole, at least some of that rusting metal will move and workers will build more. |
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Replying to: djm2 (Dec 15, 2008 4:26 am) So many holes in this that it resembles a piece of Gruyere cheese. Where is the incentive for the Detroit 2.5 to improve their offering ? How do you address the used values mentioned elsewhere ? So you try and cripple Honda, Toyota etc by blatant protectionism of the D2.5 guys..............so what happens to those Americans employed at their USA plants & suppliers and the communities that depend on their spend and tax Dollars ?  I'd like to say the idea is half-baked but that would be massively overstating its worth. Just an observation from the small island anchored off Europe. 
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Replying to: alltorque (Dec 15, 2008 5:49 am) It will give the D2.5 some cash to survive a bit longer and get their bills paid. Also, will help the economy as it will move some metal and push sales. How do you address the used values mentioned elsewhere ? Used cars might get slightly cheaper and that might attract the buyer who still can't buy new, but needs a newer car. So you try and cripple Honda, Toyota etc by blatant protectionism of the D2.5 guys Honda and Toyota don't want to see the D2.5 go down, hurts the supply chain. Economy is bad and they aren't selling too many cars either. To keep America working maybe the public gets a $5000 coupon for other makes...I'd still buy the Honda. ..............so what happens to those Americans employed at their USA plants & suppliers and the communities that depend on their spend and tax Dollars The idea might just get the economy moving again. Since the think tank guys haven't got a solution it is one that might just work, as crazy as it sounds. By the way, if any one saw 60 minutes last night, we have just gone through the first wave of subprime mortgages, there is another one coming. Not sure what will happen when more people leave their homes and prices drop further......think I'll get under the covers and go back to bed 
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Replying to: driver100 (Dec 15, 2008 6:32 am) I don't watch the mainstream media anymore to see their brainwashing viewpoints (see election coverage by NBC and owned stations for reference). Did 60 minutes fix any blame for why all these owners were being given mortgages that they had no hope of paying off?
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Replying to: andre1969 (Dec 14, 2008 3:54 pm) However, bad interiors or not, Buicks are extremely reliable and durable. |
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Replying to: fintail (Dec 14, 2008 4:05 pm)
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Replying to: elroy5 (Dec 14, 2008 4:47 pm) Everything about the Impala was inferior to the Accord, from highway stability, to performance and craftsmanship. That is a matter of your opinion. It's very easy for me to put Impala and craftsmanship together as I've been around enough Impalas and Caprices my entire life to realize what a stellar product GM has in the big Chevrolet. I've also been around enough 2003-04 Accords to realize there isn't much difference except the faux wood trim in one guy's Accord is pretty impressive. You're also comparing a rental car to a privately owned one. People are going to dog that rental regardless of whether it's an Impala or a Mercedes.
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Replying to: kdhspyder (Dec 15, 2008 5:27 am) Thankfully that is good economics coming back into play. This whole recession was caused by people being loaned money on Homes and Cars they had no business getting. Remember the Hummer tax break a few years ago? If the government was to let you write-off any new vehicle purchase as an individual it would generate more sales. It would let the customer decide which companies should survive, Not Congress or the President.
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Replying to: driver100 (Dec 14, 2008 7:25 pm) Likes his car to be the same comfort as his living room couch. Yes, I do! Thinks the easier the steering wheel moves the better the steering. Yes, I do! Thinks the more metal he can buy for his money the better the value of the car. Yes, I do! Probably prefers a bench seat in the front. Yes, I do! Yup, nothing like driving down the highway in your living room. And what's wrong with that? I doubt I'll be doing a lot of aggressive maneuvering on tight city streets in heavy traffic. NE Philadelphia isn't the Nurburgring. I also prefer column shifters and foot-operated parking brakes to complete your stereotype.
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