New Car Financing

Palum6o · Palum6o's Garage

You've heard it September alone, many car makes are down in sales, dealers having difficulty selling vehicles because car buyers cannot get financing (about 60% of buyers). Just heard an ad from a Hyundai dealer offering 12 months of deferred payments.. "... and by that time, all this credit mess will be over with." Ummm yeah... we'll see I guess. In 12 months, won't these Hyundai buyers will be 50% upside down?? I know businesses have to do what they can, but when will the madness stop?

legion · 10-02-2008, 12:12 PM

1) That's exactly the kind of financing deal that created the problems in the housing market.

2) I can still get financing for a vehicle fine. (Not that I am going to.)

widgeon13 · 10-02-2008, 12:17 PM

Let's see, I'll buy a new car, drive it for 12 months and now it's depreciated 40 - 50% and I now owe 40 grand! for a car only worth 20 at tops!

It's better than a lease, what a deal! Just let them repo the car.

You gotta know this is going to happen although just remember all those folks who will take the responsible position and buy a used car for 15 grand and not have the debt.

onewhippedpuppy · 10-02-2008, 12:22 PM

Consider the source.....Hyundai. That car loan will go great with their IO mortgage, rental furniture, and financed plasma TV.

widgeon13 · 10-02-2008, 12:23 PM

Quote:

Originally Posted by legion

1) That's exactly the kind of financing deal that created the problems in the housing market.

2) I can still get financing for a vehicle fine. (Not that I am going to.)

You can get financing, it's Joe Smuck that has bad credit that wants the new car because Dick Hurtz, next door has one and he doesn't want to be driving the old beemer, he deserves it. I gotta stop before I go political or postal, one of the two!

We got into this situation because people don't want to take responsibility for their actions! Lenders, buyers, banks, all of them, the chickens have come home to roost.

legion · 10-02-2008, 12:29 PM

In the late 90's/early 2000's, Mitsubishi decided that the best way to increase sales was to loosen lending standards in its financing arm (sound familiar). Well, it only took a year or two before the excrement collided with the cooling device. Mitsubishi had been in a one-manufacturer slump when everyone else was selling cars like hotcakes. Now they are fighting for their survival. The union just gave HUGE concessions knowing that the plant would be shut down otherwise.

Hyundai being even more aggressive (i.e. stupid) with its lending will not turn out better for them...

id10t · 10-02-2008, 12:53 PM

Happened to my now-ex sister in law. She got a 2000 (in '99) Mistubishi Montero, loaded, etc. No payments for a year.... She got my brother to refinance his house to pay for it, along with boobs for her and a harley for him. In the divorce (she cheated on him and got preggers...) he got no child support or alimony payment, but he did get teh house note. Gonna be a struggle for him, but I think he came out ahead.

stomachmonkey · 10-02-2008, 01:33 PM

Interesting thread.

Been mulling putting cash in the market.

Thinking making private car loans at 8% may be a better bet.

Rick Lee · Rick Lee's Garage

This might be a good time to buy a car. I heard today about how many dealers in the country are going out of business. Seems to me a lot of them would rather give great financing terms and worry about it later if it means they can stay in business a while longer. I have 3.9% on my 330i, but I really need to sell it, as I never drive it. My wife can sell her Mini for almost what she paid for it. If we unloaded both cars and got a new one, we'd still make payments when they weren't required and knock it out early. Of course, it makes no sense to buy a new car in AZ since the sales tax is so high and there's none on used cars in private party sales.

MBAtarga · 10-02-2008, 06:18 PM

My BIL is a recently hired car salesman at a local Chevy dealership. He's never sold cars before - was employed by Centex Homes and relocated from FL this summer.

His comments - he has said that the only people that are coming into the dealership, are those that can't afford the vehicles. They've got lousy FICO scores and no down payment available.

With the current market problems and economic concerns, the far majority of the people that are considering a vehicle purchase are the exact people that can't afford it. Those that have sense, realize the likelihood of the current problems continuing for a while and aren't willing to increase their debt.

legion · 10-02-2008, 06:32 PM

Wow, so the people that have acted responsibly with money in the past are doing so now...and the people who do not continue to believe they will be spared the reality of their decisions? They (the latter) believe they can still get something for nothing?

If only there was some number that could indicate that kind of behavior.