When dealers allow cars to roll off lots when financing isn't complete, customers can be on the hook for hundreds in extra fees or have their cars repossessed if loans don't come through.
Delinquent auto loans, those more than 60 days past due, are on the rise. According to credit reporting agency TransUnion, they ballooned 8.9 percent in the fourth quarter of 2008 when compared with the same period a year earlier. While glancing at the Detroit News headline would lead most to think delinquencies are now in double-digits nationwide, the actual default rate has risen to just .86 percent (up from .79 percent) – yeah, less than 1 percent (as optimists at Autoblog, we like to a
Two days ago we told you about Cerberus head Stephen Feinberg's rather sanguine thoughts on Chrysler. Cerberus' other big auto investment, GMAC, is having a few issues of its own. Last year GMAC's auto lending division posted a profit of $1.77 billion, but losses in the mortgage loan division turned that into a $2.33 billion for the entire company. So, GMAC is doing what companies often do in these situations: positioning itself "with a more competitive cost structure and greater operational fle