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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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| ...in Philadelphia's Grays Ferry section just laid-off 265 workers. With all these people out of work nationwide, who the heck is going to buy cars? Buying food and keeping a roof over your head is going to be a challenge! | |
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Replying to: dave8697 (May 07, 2009 5:57 pm) I am not sure in what contexts you mean the above, but to me that is almost completely the opposite (almost EVERYTHING). I know the big three have always offered so called employee discounts. But if it were not for finance companies like GMAC, my question would be: how many "employees" could, would, should buy their big three vehicles cash? Lemko's point is reflected in the MY's projection from 16-17 M MY sales in good years to 10 M (min of -40% decline) . Now keep in mind this was "PRE" lay off policies. Now that we know that unemployement is 9/10%, would anybody reasonably expect them (30 M as a min affected people) to buy new cars? I am sure there ARE exceptions, but my guess is for a very low percentage.
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Replying to: ruking1 (May 08, 2009 5:48 am) Is there any data to suggest that GMAC financed vehicles have a higher default rate than FoMo Credit financed cars? GM builds $260 Billion dollars worth of vehicles in a good year. Where do you think the money to borrow to buy them comes from? The TARP money to GMAC is a small fraction of one years worth of gross sales dollars.
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Replying to: dave8697 (May 08, 2009 7:23 am) You sort of get what I am saying, but not the real point. My prior post should have clearly indicated that I understand organizations like GMAC are finance companies. Indeed that is what I called it. Are you really taking umbrage to the fact you call it a bank and I a finance company? (I don't think so) While you ask the rhetorical question ... "Do we hate GM so much that we now want to stop financing from being available to those who dare even buy a GM?"... my take is folks that can not/will not pay cash will most certainly fianance it. The problem is credit is so tight right now, seemingly only the HIGHEST credit rating folks can get a "fair loan" (0 to 8%) let alone a loan at all. (you can read the post again for why folks are even ASKING for car loans regardless) So in effect they are only loaning to those who can afford to.... pay cash!!?? So again, (not to be rude) for example; you just lost your job  , and or your spouse is about to lose theirs : are you going to go out and 1. pay cash for a new GM/Ford/Chrysler, etc., automobile 2. FINANCE one? this is the BAD/ good? news!! Now * this by the 9/10% unemployment rate (30 M folks)
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Replying to: ruking1 (May 08, 2009 7:44 am)
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Replying to: ruking1 (May 08, 2009 7:44 am)
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Replying to: lemko (May 08, 2009 9:06 am)
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Replying to: fezo (May 08, 2009 8:47 am) 
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Replying to: ruking1 (May 08, 2009 9:20 am) I've known people who have paid as bad as ~20% for their car loans.
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Replying to: andre1969 (May 08, 2009 10:36 am) Geez, it's getting old talking about bailing out companies and people that show no signs of common sense. 
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