January 29th, 2010
As the country and the world continue to climb ever so slowly out of the recent recession, it is still difficult for most people to acquire an auto loan from a mortgage broker, a car dealership, or another type of lender. Car dealers from across the United States claim that customers are returning to their showrooms because the economy is showing signs of strengthening but those same customers are running into problems regarding their finances. Some car dealerships claim that almost three-fourths of credit applications by their customers are rejected by the banks because of the economical meltdown just one year ago has caused them to become hesitant to loan money. Read the rest of this entry »
Tags: auto loan, car loan, credit, lender
Posted in Auto Finance News | 217 Comments »
January 29th, 2010
Statistics for the automotive industry in the month of January can be a bit deceiving. Why? As we wrap up the end of a year, there are many car sales and deals available, especially during the holidays. To help boost a dealership’s end of year sales, many dealerships across the country offer discounts during the Christmas and New Year holidays; deals which many people take advantage of. So naturally, January’s sales seem to be a bit lower compared to the success in a month like December.
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Tags: automotive sales, dealership, December, January, New Year, President's Day, sale
Posted in Auto Finance News | 156 Comments »
January 25th, 2010
For many, a big part of the American dream is owning a car. It serves as a rite of passage, a coming of age, if you will. Many of us have vivid memories of our parents going to the car dealership with us to get our first car. The first time you held the keys of your very own car may have been something special. Unfortunately, for those of us who have poor credit scores, these dreams quickly turn into nightmares. Read the rest of this entry »
Tags: bad credit, credit score, finance, lender, loan options
Posted in Auto Finance Tips | 136 Comments »
January 21st, 2010
Bonds, backed by German auto leases are going to be sold by Bayerische Motoren Werke AG (BMW). These AAA rated notes, with an approximate lifespan of 1.88 years, will total $1.1 billion dollars.
On January 8, 2010, Ford Motor Co. sold bonds backed by auto loans. According to JPMorgan Chase & Co. data, investors want at least 1 percent more than what the benchmark rates for senior two-year bonds that have been backed by European automotive loans. This has been cited as the lowest spread since the third quarter of 2008.
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Posted in Uncategorized | 93 Comments »
December 30th, 2009
After months of talks, the Treasury Department has announced that it will be giving $3.5 billion to Detroit-based finance company GMAC. The amount is in addition to the $13.4 billion already invested in GMAC last year.
This year has been a turbulent one for GMAC according to personnel at Manchester Used Cars. The company has been evaluating its automotive and residential mortgage financing programs to ensure its growth and ability to repay government loans in the future. Despite setbacks, GMAC continues to be the main lender for GM and Chrysler dealerships and their customers. Read the rest of this entry »
Tags: auto lending, chrysler, gm, gmac, treasury
Posted in Auto Finance News | 119 Comments »
December 18th, 2009
Amid the recession, vehicle leasing became a severe hindrance to automakers. As consumers defaulted on payments, and the value of cars following the lease term plummeted, some automakers cut back on vehicle leasing while other terminated it completely. However, has the economy gets back on its feet, automakers are beginning to return to leasing, but at a far more reserved pace.
Vehicle leasing has always been an attractive option for car buyers. Leasing typically provides lower payments on a new car when compared to buying. So for the expense of a used car, consumers can be driving off the lot in a new car. Car dealers also like vehicle leases because it keeps consumers returning to the dealership, both for vehicle maintenance and to acquire a new lease. Car dealers also get late model used cars from returned leases. Read the rest of this entry »
Tags: auto sales, lease, leasing
Posted in Auto Finance News | 57 Comments »
November 18th, 2009
Black Friday is the day after Thanksgiving, and is notorious as a busy shopping day. And while good deal are abound, buying a car is not typically on the list for Black Friday shoppers. But new research from Truecar.com suggests that this day is ideal for getting a great deal on a new car.
Looking at day by day data over a period of several years, Truecar.com suggests that Black Friday is a day when discounts from dealers and incentives from manufactures add up to make it one of the best days to buy a car all year. Although the amount of a discount in the car business can’t be predicted due to the negotiation on the day of the sale, Truecar.com suggests that based on trending data the average discount on Black Friday is 7.5 percent. This figure is substantial considering the average discount on an average day during the year is about 4.7 percent. Of course, Pittsburgh Mercedes-Benz dealers stress that buyers should keep in mind that these discounts vary based on the make, model, and the model year.
Knowing that Black Friday will generate a buying frenzy among consumers, as it does every year, car dealers are trying to capitalize on that trend. Many dealers such as Philadelphia Chevrolet are looking for ways to standout and generate foot traffic on that day. Dealers have typically spent plenty of money on advertising and marketing for that specific day, but after one of the worst years for car sales, many dealers are eager to do more and capitalize on trends.
In addition to the Black Friday hype that may lead to attractive deals, the day also falls towards the end of the month which is great for car buyers anyway suggests Nissan dealers Boston. Throughout the month, dealers are increasingly eager to sweeten the deal. Buying a car at the end of the month is therefore better than buying on the first of the month. Additionally, dealers are eager to move 2009 model year vehicles off their lots completely before entering 2010.
As dealers feel the pressure to meet quotas, move 2009 inventory, and stay in the black, Black Friday will not be the only day that buyers can expect can get a deal on a new car in the near future. Read the rest of this entry »
Tags: black friday, car buying, new cars, truecar
Posted in Auto Finance Tips | 137 Comments »
August 20th, 2009
It seems as though the Cash for Clunkers program is facing new obstacles. Following additional government spending, the National Automobile Dealers Association has begun urging the government to shut down the CARS program immediately.
The NADA believes that the brisk sales triggered by the Cash for Clunkers program has made dealers weary of exhausted funding. With so many cars being sold through the program, Framingham Infiniti dealers say the NADA is rightfully concerned about the program’s $3 billion budget.
Car dealers have generally liked the influx of new customers that the program has helped bring in explains Pittsburgh Cash for Clunkers dealers, but there are still lingering concerns and doubts. Reports have suggested that the majority of dealers are still waited for delayed payments by the federal government. Regardless Transportation Secretary Ray LaHood has attempted to reassure dealers, claiming that all dealers will be reimbursed and that there are plenty of funds available still to ensure that will happen.
With an enormously bureaucratic system, the reimbursement period has taken longer than expected for many dealers. Despite reassurances, the NADA is still concerned that car dealers will not get paid, which would add insult to injury say New York Dodge dealers as many dealers continue to struggle amid a weakened economy.
Despite reassurances, car dealers are still expressing concerns over the Cash for Clunkers program, and are pushing for a suspension at the very least. For a program that’s still relatively new, it’s facing a second suspension which doesn’t bode well for the program’s longevity. Read the rest of this entry »
Tags: cars, cash for clunkers, nada
Posted in Auto Finance News | 113 Comments »
August 18th, 2009
In a recent University of Michigan study of customer satisfaction, Cadillac topped the list with Lexus as brands that consumers are most satisfied with this year.
Last year, Cadillac earned the number two spot in the list, but this year the American luxury brand has matched Lexus with a score of 89 in the American Customer Satisfaction Index, which has impresses Cadillac CTS Pittsburgh dealer customers. Customer satisfaction for the all the Big Three brands rose slightly overall.
Interestingly, the rise in satisfaction from Big Three customers may have nothing to do with changes to products or customer service. As sales declined, Pittsburgh Cash for Clunkers suggests more customers did not return to the Detroit brands. Therefore, the remaining customers were a smaller group overall, but more satisfied.
Customer satisfaction is an important factor that serves as a good indicator of what buyers are likely to make a repeat purchase. A Boston Collision Center points out that others near the top of the customer satisfaction list included Lincoln-Mercury, Chrysler, Buick, and Honda. Volkswagen make the largest just on the lists, increasing its score by 6.0 percent from last year to achieve a score of 86, marking the first time the German automaker has scored above the industry average of 84. Read the rest of this entry »
Tags: big three, cadillac, car buyers, customer, lexus
Posted in Auto Finance News | 157 Comments »
August 12th, 2009
Cash for Clunkers has been a tremendous success so far, despite substantial setbacks. After only a week following its launch, the program was suspended as Congress decided to appropriate more funding to keep the program afloat. But with another $2 billion added to the program, some suggest that the “gold rush” mentality might be subsiding, leading to pre-Cash for Clunkers sales levels to return by next week.
Since its peak in July, auto research groups have suggested that interest in the program has fallen about 15 percent. The program spurred interest from car buyers at a Ontario Oregon Subaru dealers and elsewhere as it provided $3,500 to $4,500 vouchers for those that traded in an older gas guzzler for a fuel-efficient new car.
With new funding, demand has waned according to industry experts such as Edmunds.com. Analysts say the original funding budgeted for the program was too low in relation to the auto market overall and this created a “gold rush” mentality to take advantage of the cash before it was too late. With another $2 billion earmarked for Cash for Clunkers, some among Boise used cars dealers fear the urgency has been minimized.
Despite what many suggest is a decline in the Cash for Clunkers frenzy, one dealer that specializes in Birmingham used cars expects new car sales to be healthy as car buyers will be bargain hunting this summer prior to 2010 model year releases. Despite what slowing popularity the Cash for Clunkers program may have, auto sales will likely improve over the summer as consumers hunt for bargains before new models hit the showrooms this fall. Read the rest of this entry »
Tags: cars, cash for clunkers
Posted in Auto Finance News | 27 Comments »
