Chrysler Financial hasn't been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration's Automotive Task Force found that the lender didn't have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties for Chrysler. Part of that decision was due to the fact that last year, used car values were at one of their lowest points in decades. Since the majority of Chrysler Financial collateral involves used cars
With today's dire economic climate, it should come at no surprise that delinquencies on automotive loans climbed last year. But what's perhaps counter-intuitive is, despite a particularly acute financial crunch, Michigan's residents owe less on their car and truck loans than their counterparts in any other state. In fact, 35 states have a higher delinquency rate than Michigan, according to the latest findings of TransUnion, one of the country's largest consumer credit agencies.
The economic stimulus bill just got a whole lot more interesting for automakers and car buyers alike, as a proposal to make interest on auto loans deductible has been voted in. The proposal, which was championed by the National Automotive Dealer Association, was voted in by a bi-partisan 71-36 vote. If the $800 billion stimulus bill passes the Senate and this provision survives, car buyers will be able to write off auto loan interest on their taxes, saving about $1,500 on a $25,000 car purchase.
Findings from a recent study could potentially change the way banks pick interest rates for new car loans. The study, run by Penn State's Smeal College of Business professor Brent Ambrose, found the probability of car owners defaulting on their loans was actually affected by the make of the model.
This is possibly the least shocking news of the day when you consider that the housing market, which fuels the full-size pickup segment, is in a slump and gas prices are rising once again. Nevertheless, General Motors must respond to market pressures, and in the wake of Silverado sales that fell 7% last month (that's the all-new, winner of the Motor Trend Truck of the Year, critically acclaimed Chevy Silverado), has decided to offer some new incentives to spur sales of Chevy's new truck and its