It’s unfortunate that some people get buried in debt. I frequently get emails from folks underwater on their car loans and most are hoping for some solution that defies the laws of mathematics. Here’s the real answer: there is no real answer.
Good morning! Welcome to The Morning Shift, your roundup of the auto news you crave, all in one place every weekday morning. Here are the important stories you need to know.
The average auto loan payment is almost $500 a month and loan delinquency is at an all time high. Many industry analysts are concerned about the long-term financial consequences of car loans people can’t afford. But if you’re struggling to make your payments, don’t blame the bank or the dealer.
Now that internet car shopping has become more commonplace, some dealerships are doing everything in their power to avoid giving you a written quote. One of the newest tactics is requiring you to submit a credit application in order to send you a price. Don’t fall for this.
As if defaulting on your loans isn't crappy enough, some states will actually suspend your driver's license if you fail to pay. Seriously.
Subprime loans, the same type of horrible financial junkfood that led to the bonanza right before the financial meltdown in 2008, went right back into bonanza mode over the past year once people figured out they could use them to sell used cars. And once people realized, firms started cutting back. And now the…
I desperately need a new car, the one that I have is becoming an unreliable money pit. The problem is I owe $4000 more than it is worth. I have no cash for a down-payment, but I can handle $350 per month. How do I get into another vehicle and break the cycle of being underwater on a car loan?
Having two lead writers here on Car Buying is great because we have very different perspectives. Tavarish plays the inexpensive pre-owned market like a pro and thinks financing is for fools. Since my focus is mainly buying cars from dealerships, I say it is a bit more complicated than just dollars and cents.
It's the nightmare scenario. Your child is having an asthma attack and you need to rush her to the hospital, but your car won't start. It happened to Mary Bolender, but it wasn't a mechanical issue. Her lender had remotely disabled her car for missing a payment.
Carlos Uruchurtu, general manager of George Chevrolet in LA, had a problem, his hard-working sales staff would do their best to get a customer into a car only to have the deal fall through when it came time to get a loan. Uruchurtu came up with a plan to pay his staff even if a customer didn't drive home with a car.
My old jalopy is about to die on me yet again, so it's time for a new car. I'm wondering if I'd be better off leasing my next car instead of buying it. Which is the better deal, leasing or buying with an auto loan?
GM is rebuilding
GMAC Ally Bank its captive finance arm by buying AmeriCredit for $3.5 billion to increase leasing to low credit and at-risk car buyers. Wait, isn't this part of what got the U.S. into this whole mess? [GM]
Japanese automaker Toyota claims it's seeking a $2 billion state bailout to help its car financing unit. Maybe if they'd built the cars Americans wanted to buy, they wouldn't be in this mess. Wait, what?
The Wall Street Journal reports this morning the super number one awesome best automaker from the land of the rising sun said it will set aside major reserves for its first quarter to cover losses from vehicle leases in the U.S. And with that, Toyota now follows Chrysler, GM and Ford into the land of plummeting used…
USA Today, America's most colorful newspaper, is running a story about devices that are being used to ensure car payments are made on time or it will kill the car. It's not the most high tech device in the world, but I'm sure it works and gets the job done. A box installed in vehicles purchased with subprime loans…