Loans Information |
Zero Zero Financing on Automobiles in Retrospect
Some say that the automobile industry saved the economy during the last recession. This is because auto sales are bundled into retail sales, which allowed higher numbers than actual to be reported. Many will say that what is good for General Motors is good for America, they might even cite the fact that the automobile industry saved the economy at the bottom of the last recession. Remember when Mitsubishi did the Zero-Zero-Zero plan. This was a calculated risk and were betting on the election year gold rush to help pay for any of the fall-out in loans? Well that never came because the US interest rates stayed down, job recovery came late and Domestics along with those other foreign automobile companies did quite well. So what is happening now due to this decision to go 0-0-0, well many of those loans have gone South, and the Yen is high against the dollar and now Mitsubishi is about 2 billion in the hole at last count. The Mitsubishi bail-out cost at least $1.9 billion US Dollars. Many auto industry economic advisors had mixed opinions on this, but for the most part thought the plan for zero-zero-zero was foolish. Zero money down, Zero interest rates and zero payments until next year. This was in 2002 and today 45% of those cars have either been turned back in, repo'ed, sold at auction or are in default. All good things, which are not reality based do come to an end. Many knew there was going to be a problem as the sales winded down and we were being strung out on our payments from a few dealerships out there. Triple zero was not a win/win for the consumer, their credit or the company. Many of those vehicles were bought by first time buyers who never even made the first payment which started many months later, yet had put over 15,000 miles on those cars and reduced its value by over 65%, ouch, that is a nightmare from a banker perspective. No wonder Corporate America wanted bankruptcy reform, even though such a reckless lending of credit was a completely foolish business move. American consumers today are upside down in their high priced SUVs, they owe more than they are worth and those who bought gas-guzzlers in 2002 are still paying on vehicles, which are not running very well today. Most had paid sticker price or near to get the zero-zero and still others got a rebate, which was used for a down payment to make the deal. I met a gentleman who filled up his beautiful Suburban the other day. His total came to $97.00 and he was pretty depressed, I actually thought he was going to cry. We got to talking about his beautiful Venti sized SUV and he told me it cost $48,000 and had all the bells and whistles. I was impressed and asked him what he did for a living. He works for the local city and said he was able to afford it due to the zero zero program and he wanted to sell it now due to fuel costs as he is divorced and now single. He is thinking something more economical might be a better plan? Perhaps a hybrid? I guess I understand what he is saying. He explained he could not sell the vehicle because he still owes $39,440 on it and it is only worth $18,000 now. What a nice guy with a disaster of a brain for a financial planner, but alas he is not so much worse off than you, is he. Sixteen point nine million Americans bought new automobiles on the zero zero plan. Perhaps they did not plan on this; the $3.00 per gallon gas prices. Are you one of them? How does that make you feel? Think about it. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
5 Things Pensioners Applying for a Loan Should Remember Are you a pensioner applying for a loan? Here are 5 things you should rememberAs a pensioner, applying for loans and finance can be problematic. Some of the best deals in the market may be unavailable to you because you do not meet the ideal criteria that lenders look for. No Fax Payday Loans Online for a Fast Cash Advance Loan For a fast cash advance loan, no fax payday loans are now available online. By completing your application online, you don't have to fax paycheck stubs or forms. Become A Smarter Borrower With a nation that has in the region of a Trillion pounds of debt one could say we are serial borrowers. Before you consider borrowing money it is wise to consider a few important points. If You Consider To Get a Quick Cash Loan Then Reconsider It A quick cash loan also called payday loan, cash advance loan or a deferred deposit service is a small, short-term loan typically ranging from $ 100 to $ 500. These quick cash loans are issued against paychecks. Making Cars Accessible Through Secured Car Loans Enervated by the hectic schedule at the work place, traveling back to home in a public transport carrier seems to be a grueling task. This reasons out the transformation of cars from luxuries to necessity. Bad, Credit, Student, Loans - Disjointed They Don't Make Sense - Join Them and See the Possibilities The day you stop learning is the day when you start decreasing your rewards. Learning is a constructive effort - who knows it better than student. A Brief Look At Various Types of Loans Available A Brief Look At Loans"Innovative financial packaging" is how it is sometime known. Essentially what this means is that financial institutions look for more and more ways to lend to their customers - after all, charging interest on a debt is the main way that they make their money. How to Get a Business Loan in Five Steps Need funds to startup or expand your business? Follow these steps:A lender looks at a loan request in three sections known as the "three C's". They are:Credit. Secured Personal Loans: Constructive Structuring for Financial Success Credit relationships in a social system form an intricate web which extends throughout the financing environment of the community. This affects almost everybody from consumers, loan companies to government. What is a Home Loan? A Home loan is the generic term for a loan. A home loan uses your home as security. Getting a Debt Consolidation Loan Should you find yourself getting in over your head with debt, you might be a prime candidate for a debt consolidation loan. These loans are designed for those with a heavy burden of debt, and are used to consolidate a large number of debts into a single manageable payment. How to Finance a Small Business Confused by how to finance a small business? One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.Raising capital is the most basic of all business activities. Guide to Secured Personal Loans Here is a useful guide to secured personal loans. A secured personal loan is the generic term for a loan. Facts You Should Know About Types of Loans When you set out to borrow, you often come across terms like unsecured loans, revolving loans, adjustable rate loans, etc. While these terms are more or less self-explanatory, it is still useful to be clear on their exact meanings and what they imply before you finalize a loan contract. What Is A Payday Loan? A Payday loan is a small, short-term, high-rate loan. It is also referred to as: cash advance loan, cheque advance loan, post-dated cheque loan, deferred deposit cheque loan or cash loan. No Credit? - You Will Need a Bad Credit Loan So you have never taken out a loan? You don't have a credit card and you don't have a mortgage? You always pay cash? You're a student, a recent widow, a divorcee or from an ethnic minority group who have a tendency not to have any lines of credit? If you are any of the above then your credit score will not necessarily reflect your ability to pay as you have little or no credit history whatsoever. This will make it difficult to obtain any form of loan and in these circumstances you may have to take out a bad credit loan. What is an Unsecured Loan? An unsecured loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. Loan Options for College Students You just finished high school and realize you have two months to work and save up for your very expensive post secondary education. Your parents are willing to help you out a bit, you have a very impressive $4. Finding the Secured Homeowner Loan for You If you've been thinking of getting a secured homeowner loan, you'll find it worth your time to do a little research on these loans and to shop around for the best deal.Getting a secured homeowner loan can help you to take care of any of a variety of expenses? from autos and vehicles to home improvements and debt consolidation, these loans have a much wider spectrum of usage than most secured loans. What is a Bridging Loan? A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new property completion prior to your existing property having been sold.A bridging loan is in simple terms a short-term mortgage that is secured against the property that you are selling, with the money that is lent being used to complete the purchase of the new property. |
home | site map | contact us |