New Financing for Auto Loans

With the Treasury Department’s announcement that they were making a 41.5 billion loan to Chrysler Financial, the auto loan industry jumped for joy. This larger auto loan if you will is for the purpose of financing more auto loans for their clients. The Treasury said that this is an attempt to make the process of getting an auto loan easier, thus making the domestic auto industry more financially viable.

Republicans are not happy with the auto loan as they say that they don’t want any more funds going to help specific industries, and have asked President Elect Obama not to use funds for that purpose. Whether or not he will remains to be seen, but for now this is the last loan coming from the Bush Administration.

Chrysler Financial has been working hard to gain the trust of the Treasury Department and to secure the auto loan. GMAC has already received $6 billion in December to bail them out, and Chrysler has been trying to make themselves look loan worthy since that bailout.

The auto industry had gone before Congress last year and asked for a loan to help the sagging auto loan industry. They had said that without government assistance they would have to close down many of their plants and lay off millions of workers. Whether or not this was actually the case remains to be seen, as they have gotten their loan. These funds will help the auto loan industry write more loans, which will in turn prop up the auto making side of the industry.





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