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I wonder if they count self financing (say, a HELOC) as financed or not (probably not), and if they account for captive financing (or at least through the dealer) the same as bringing in a CU check?
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Oh, I don't think that lenders must share blame so much as suffer the consequences. If they give away too much credit too easily to those who aren't good risks, then they go under. I don't believe that the customers who signed up for the bad loans "share the blame" for the lenders going under, in the same way that I don't believe lenders are responsible for consumer's foolish actions.
I could probably be approved for a car loan at 3x my current car loan, but rather than make an impulsive decision based on "I deserve it, I want it," I took a real look at my overall budget and *I* decided what *I* could afford.
People who cannot do this should, IMO, quite simply not go shopping without being accompanied by someone who can.
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Actually, a few years ago (well, 11 now) when I bought my current house, I had to close before selling my prior house. Turns out that, even though I was nervous about taking on the higher (new) mortgage, the lender was perfectly happy to loan me enough to buy own both houses! So instead of a brdge loan of some kind, I just took out a mortgage on the new house.
Of course, even though the bank said it was OK, I would have been a wreck being tied to that monthly nut on one house!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Has anybody here had to personally change there life style drastically due to the "crisis"?
Here where I live the news had a big thing how TN home sales are at there lowest point in 3 years.
What the meat heads fail to mention is that 2005 and 2006 were record years in the state and that 2007 was the third best year ever. But to report that would not be sexy and have no wow factor.
Don't look at the current market as a crisis, look at it as a opportunity. An opportunity to acquire some investment property.
The only people it are a crisis for are the people who took out loans they could not afford, for the rest of us it just means that it is a buyers market and we may not want to sell for the next 6 months.
Any one who thought the housing market would continue to climb at the rate it has been was fooling themselves anyhow.
My owner told us this morning that the news is going to be talking about recessions and car sales falling in 08. he then pointed out that we Ford people have been in a recession since 01 anyhow so we are ready for it, and it will do nothing but benefit us because whenever this happens the manufacture panics and puts on crazy incentives.
He went on to talk about how in this day in age the people hit hardest by the recessions are not the target demographic.
"Imports are superior"
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Great opportunity for folks who don't have to sell to pickup investment proporty or for folks renting to jump in and buy something.
-mike
I imagine your area in TN is similar to where I live, south central PA. We tend to be a year or two behind the trend. Our housing market has finally slowed. Houses in my neighborhood used to sell in 2 weeks at full price. Now there are 5 houses that have been on the market since the spring. Builders have canceled several planned developments in my area. I'm happy because 3 of these developments involved closing golf courses. I'm not sure if we are in a crisis yet, I know people have less money whether it's due to a bad mortgage, higher gas and energy prices or higher food prices. And they are predicting job loss this year.
I'll be interested in seeing how Ford benefits from all of this.
If it does decline then the manufacture will support us with the appropriate programs which 3 times in the past have equated to record months for us.
We have already taught ourselves how to work smart and dig for sales. We have also cut all the fat from the dealership and run on a lean budget.
I also understand the 7 year cycle our business seems to run on, the end of this year will be about the bottom and then the turn will come.
"imports are superior"
I hope you are right about this bottoming out this year. Nobody wants or needs a recession. Luckily I am in recession proof business.
The traditional way was that the bank would loan you money and then collect the payments over the years to make the original amount plus interest back. So, banks had vested interest to make sure that they will get their money back.
This all changed recently, when banks were allowed to package these loans into securitues and sell them on the securities exchange. So, the banks no longer had to make sure that you would be able to pay them back, they knew they could make money tomorrow by selling your loan as a securities paper.
So, if you lend Pete money on Monday with the promise that he will pay you back on Friday, but he does not pay, you are not going to lend him anymore money next Monday. However, if you lend Pete $20 on Monday, and sell his loan to Joe on Tuesday for $25, then when Pete comes back to you next Monday for more money, you lend him some more money, because you don't care anymore.
So, all these foreign nations that trade with us, have these huge sums of US currency that they were pumping into these securities papers. All over sudden, they were not seeing the reutrns they were expecting, the stopped buying the securities, and the dollar started to lose value. Since oil is traded in dollars, devalued dollar, made the oil look very expensive....
I hope it clears up the global picture... We are in for a long long recession and the dollar may be surpassed by the Peso one day.
Anyway, part of my job is I get the joy of going to people's homes that have defaulted on the loan to try and make contact if they won't return phone calls, set up payment arrangements etc.... I get the joy of knocking on thier door and personally getting to try and get a payment. That aside, I am always amazed when I pull up to a home that is old and decrepit and falling apart and yet there is a brand new Navigator, Silverado, or other Brand new vehicle in the driveway. Or the vehicle(s) have 20 in wheels, boomin sound system and all the aftermarket goodies..... They can't pay for their home, but at least they can live out of thier ride if the house gets taken. More often than not these vehicles look worse than my 4 year old 100K truck. The best one I saw was a home where the person couldn't keep up with the payments so she was trying to sell a couple of her vehicles to pay off the house. Guess what she was trying to sell? A 03 BMW 3 series and an 04 fully loaded Tahoe.
As a side note I window shopped a dealership the other day just to "look" so I would be a little more prepared to buy than last time and they tried to talk me into an '06 crew cab Silverado with 500 a month payments. I looked at them like they were crazy bonkers and basically walked out. A long story short, they were only going to give me at first about 2k for my truck and rebate the Silverado to about 26K. They finally after I kept telling them time and time again I wasn't going to buy even if the payment was only 100 a month came back and said 5K for my trade and a payment of 300 a month, but I still said no deal because I didn't want a car payment, I had a good truck that was paid for, needed very little maintanence, ran well, and got better gas mileage and still did everything I needed it to do.
They tried to throw at me the warranty, no out of pocket costs, and what if my 100k truck breaks down, or a tranny goes out etc... I came back with, I would rather drop 1200 once for a new tranny and get another 100K miles than drop 26K for a new truck I'll be paying for for the next 5 years. And then they said what if your truck starts having problems? And I said what if?? That's what if? It hasn't yet, I maintain it very well and I would be ashamed if I gave away a truck that goes another 100K with no problems that I don't have payments on only to have to pay to drive a "new" truck that in a couple months would no longer be "new"...... Drive it till it drops it my motto.... and while I am driving it till it drops, I take the money I would have spent on monthly payments, pay myself to drive and then take that money down and make a deal on a new vehicle when ever that happens...
want to keep this auto now when its time take it back do any of you thinks its in the best interest of me to get a new one i am not leasing again though. With the deals going on now & the economy the way that it is. When 2010 comes around will i be in a position to get a good deal thats all guys thanks.
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Hmmm, I think I have a better chance of predicting the 2010 Kentucky Derby winner.
Best regards,
Shipo
I'm trimming costs in other areas of life...is it conceivable to think that one could trade in a BMW for a Honda and have a lower payment (without sinking in $10k to make it work)?
Have any of you "traded down"?
In this awful economy, plenty of people are trading down. For many, it's a sensible way to manage expenses.
I'm trimming costs in other areas of life...is it conceivable to think that one could trade in a BMW for a Honda and have a lower payment (without sinking in $10k to make it work)?
Have any of you "traded down"?
Sure, you give me your BMW and I will give you my Honda. You pay your BMW rate, and I will continue paying my Honda rate.
Deal?
Honestly, if you can afford to pay for it, keep paying. Don't fall for a knee jerk reaction. If you really want out of it, be prepared to lose a shirt in the deal. No one really wants a really expensive car right now. And people who want them, they can buy brand new one from the dealer without hassle of private transaction.
Good luck.
One is not dependent on the other. They are two different issues. If the value of the collateral diminishes, it does not affect the issue of honoring the note. And if the collateral increases in value, the note is not affected either.
Bottom Line: Honor your debts and pay off the balance.
If you have good credit FMCC will carry the advance for you.
I did some quick ball park figuring. If you are $10K hooked you could look at a $24K Fusion and drop your note $250 a month on a 0% loan.
Ford Fusion is made in Mexico providing jobs for the Mexicans and ther suppliers.
Honda Accord designed and built in the good ole' USA out of USA supplied component. An all american car.
Interestingly, Mazda 6, Ford Fusion's sister is made in Detroit at a Ford plant...
I bought a 01 BMW 2.5 years ago, payments are a bit high because of my credit back than. I was looking to refi, but now the car is more than 7 years old, I owe about 12k on it, but now its worth only like 8ish.. what a crap deal I got huh.. Live and learn.. Looks like I am keeping it till I pay it off. Hopefully nothing breaks on it, knock on wood.
Esp if you had so-so credit.
You should have bought a nice econobox,fixed your credit THEN get the nice car.
Why do people do this!!!!!!! :sick:
Ford Fusion is made in Mexico providing jobs for the Mexicans and ther suppliers.
Honda Accord designed and built in the good ole' USA out of USA supplied component. An all american car.
Interestingly, Mazda 6, Ford Fusion's sister is made in Detroit at a Ford plant...
^^^^^^^^^
Those Mazda 6 look very interesting and sportier than Accord/Camry. Close=Altima
Image!
Drive by the projects, and you will see more Escalades and Lexus SUV's than you would in the wealthy part of town.
Offering Info Term: 72
Est Pmt: $544
Unpaid Bal: $38,329
Wholesale: $25,105
Pct Adv: 153%
Decision: Approved
Tier: 1
Cond Pct Adv:
I'm of the opinion, and have seen it in this topic many times, that the first thing to do when you find yourself in a hole is to stop digging!
Of course if you're top tier credit you have to be doing something right!
Now an old car suffers the death of 1,000 cuts. A power mirror quits working, then the auto wipers, then the self-dim rear view mirror, then the power seat, then the power window, then the cruise control, then one of the power locks, then the climate control, then the back up camera, but you get the idea :P
My '78 VW Rabbit - stick, no air, AM radio - died short of its 4th birthday, with just 55K on the clock. I sold it to someone who was looking for parts. Contrast this with my wife's '99 Lexus ES 300, with all the goodies. We kept it for more than 8 years - 4+ years past warranty expiration - & spent a total of $500 on repairs before selling it for top dollar. We'd still have it today if my wife hadn't fallen in love with the ES 350.
I've found that I can easily get 10 years out of a properly maintained car without any heroics. That's why we've bought a grand total of 6 cars for 2 drivers during the past 25 years.
I can't think of the last time I've been upside down on a car. As I said earlier, Joel, I'm glad this works for you. You'd hate me at shopping. Our Accord will hit 10 in December. It recently hit 168K on the clock which makes it officially the highesy mileage car we've ever had. It long ago became the one we've put he most miles on since out two previous 167K+ cars were bought used with mileage in the upper 30s when we got them.
He figures to always carry a car payment. He bought new a bunch of years back - a Subaru Outback. When it hits about 59 K he trades it in for another. He keep a low loan payment and keeps a small fund for putting down on the next one. He figures he never pays for repairs, never has an unmanageable payment and always has a nice, clean, well kept car. He could do worse.
At one point, my method was 1 new car (the wifes family mobile) kept as long as it served it's prupose and was reliable. Target being 6 years at least, and it got the long trips (so 100% reliability was key). the Quest? No problem for the 6. The Voyager? That made 3 before it got traded for the Quest!
My car was a 3 YO something interesting that I would keep until it was 6 years old, theoreticlaly lower the cost.
WOrked correctly, every 3 years or so a car would be purchased.
I have since abandoned the plan, and for me, find that buying new and keeping a long time should work better (not that I can do it).
Currently we are invested heavily in being too poor to buy a new car (and college bills loom), so we have switched to the keep them forever plan and hope they last!
But, if I do need to replace one soon, I am going with a 2-3 yo semi luxury with heavy depreciation (say, a 2007 Volvo). Some good buys to be found tht way.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I think that's redundant. If it's not reliable then it's not serving its purpose.
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