[quote=jpinpb]I heard about the GMAC lowering the credit score. Maybe I’m missing something here:
Will lowering the credit score allow people to purchase their vehicles that ordinarily wouldn’t have? I.e., is that what’s keeping people from buying their cars, as opposed to a Toyota or any other vehicle?
If unemployment is rising, why would someone go out and buy a new car anyway? Wouldn’t finding a job, paying rent/mortgage and food on the table be more of a priority?
If the people had bad credit, wouldn’t it be more advantageous to sell to someone w/good credit?
If someone has a lower credit score, then they are apt to not make payments. If they default on their car/truck payment, how will that help the company in the long run?
Just crazy thoughts in my head.[/quote]
Exactly, another brain dead move from the treasury. The last thing most americans need is to go into more debt, especially from a car company that will be bankrupt in the near future.
It’s unfortunate the we have to over consume to keep people employed. If Americans were savers we would lose a portion of the economy.
Cars cost only $20,000 on the average. If somebody buys a $30,000 SUV and default on it two years later. You can recover at least $20,000 unless gas prices shoot to the moon. It is easier to sell a car than a home. The downside risks are much lower.
You need to weigh the tradeoff between auto sales and credit line to GMAC. I would rather spend $$$ on GMAC rather than bailing out GM/Chrysler/Ford. Ideally I would prefer neither.
Cars cost only $20,000 on the average. If somebody buys a $30,000 SUV and default on it two years later. You can recover at least $20,000 unless gas prices shoot to the moon. It is easier to sell a car than a home. The downside risks are much lower.
You need to weigh the tradeoff between auto sales and credit line to GMAC. I would rather spend $$$ on GMAC rather than bailing out GM/Chrysler/Ford. Ideally I would prefer neither.
Cars cost only $20,000 on the average. If somebody buys a $30,000 SUV and default on it two years later. You can recover at least $20,000 unless gas prices shoot to the moon. It is easier to sell a car than a home. The downside risks are much lower.
You need to weigh the tradeoff between auto sales and credit line to GMAC. I would rather spend $$$ on GMAC rather than bailing out GM/Chrysler/Ford. Ideally I would prefer neither.
Cars cost only $20,000 on the average. If somebody buys a $30,000 SUV and default on it two years later. You can recover at least $20,000 unless gas prices shoot to the moon. It is easier to sell a car than a home. The downside risks are much lower.
You need to weigh the tradeoff between auto sales and credit line to GMAC. I would rather spend $$$ on GMAC rather than bailing out GM/Chrysler/Ford. Ideally I would prefer neither.
Cars cost only $20,000 on the average. If somebody buys a $30,000 SUV and default on it two years later. You can recover at least $20,000 unless gas prices shoot to the moon. It is easier to sell a car than a home. The downside risks are much lower.
You need to weigh the tradeoff between auto sales and credit line to GMAC. I would rather spend $$$ on GMAC rather than bailing out GM/Chrysler/Ford. Ideally I would prefer neither.
