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Auto Loans
are Tougher to Get
Trying to
get an auto loan? Then you have probably
already discovered that it is much harder
than it used to be. Those that have auto
loans are defaulting on them, and those
that want them cannot get them – all due
to a weakened economy. Many banks have
instituted a “credit freeze” for all but
their absolute best customers as everyone
is afraid to loan anyone money.
The auto loan industry has been hit almost
as hard as the mortgage industry, but as
more people default on their homes, they
are also defaulting on their auto loans.
This means that fewer people are eligible
for auto loans, and thus fewer people are
purchasing cars.
This means that the car industry is
getting hit hard as well, as is evidenced
from their meetings with Congress. The
automakers are asking for assistance
because otherwise they are going to have
to lay off millions of people thus further
damaging our economy. The idea is that if
they could get some help to get them
through, an auto loan of their own, then
we might weather the storm.
But it is a vicious cycle – client does
not pay auto loan, therefore it is harder
for someone else to get an auto loan, the
cars therefore are not selling, and the
automaker isn’t making any money, so now
they need an auto loan as well. It is
evidenced across America that if the auto
industry goes under as many others have
already done, then we may be swimming
against a current that is simply too
strong to beat.
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2008
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