Simply infuriating. I don't really have much else to say

http://www.forbes.com/afxnewslimited/feeds/afx/2009/01/16/afx5932360.html

1/16/2009 3:14:17 PM

Does anyone think that these "loans" will be paid back?

1/16/2009 3:20:46 PM

Simply amazing

Quote :

"NEW YORK (CNNMoney.com) -- The Treasury Department, expanding its bailout of Detroit, announced Friday that it will loan Chrysler Financial $1.5 billion, opening the way for Chrysler to offer buyers interest-free loans to revive slumping sales. The Chrysler 0% offer came less than an hour after Treasury announced the bailout. The offer, available on select Chrysler, Dodge and Jeep vehicles, applies to loans of no more than five years."

http://money.cnn.com/2009/01/16/news/companies/chrysler_tarp/?postversion=2009011614

GM essentially did the same thing right? Is Chrysler also going to give this money out to sub prime borrowers? Pure madness. Anyone that can afford to get a new car in this environment could get financing. Is there anyone out there right now thinking "Yes, I don't have a job to drive to to now, perfect time to load up on the SUV now that the financing is 0%"

1/16/2009 3:28:09 PM

Quote :

"Anyone that can afford to get a new car in this environment could get financing."

simply not true.

unless by "afford to get a new car" you mean "can get a car loan in this climate"

banks are simply less willing to take risk on loans right now. for better or worse. i guess the pendulum has swung back in the other direction as far as risks banks are willing to take.

[Edited on January 16, 2009 at 4:39 PM. Reason : .]

1/16/2009 4:28:17 PM

I can give you the name and address of a neighbor and a relative who just bought brand new cars on financing. I don't know how much more difficult a car loan is versus a home loan at this point in time, but I literally had banks trying to give me money to get my business on a house I just closed on.

You simply don't know what you're talking about.

1/16/2009 4:40:34 PM

anecdotal evidence is the best sort of evidence!

1/16/2009 4:51:12 PM

Currently light years ahead of anything you've posted. GM has lowered their standards to 620 fico for loans. That's subprime and conflicts with what you posted about risk aversion. That plus my anecdotes destroys anything you've posted thus far. Feel free to back up what you said with anything other than your lack of credibility.

1/16/2009 5:00:32 PM

i don't claim to be an expert. but when someone posts three anecdotes as their evidence i call them out.

all i know is that i've been reading stories about car loan standards getting stricter in the past six months or so.

apparently gm recently announced a slackening of their standards (after just a few months making their min. score 700). and that announcement of the 620 credit score standard came AFTER the bailout announcement which pretty much negates the original point you were trying to make that automakers shouldn't be using the bailout money to increase their lending and slacken their standards because anyone could supposedly get a loan.

[Edited on January 16, 2009 at 5:16 PM. Reason : .]

1/16/2009 5:15:56 PM

Quote :

"but when someone posts three anecdotes as their evidence i call them out."

You have a point, I guess I should have said something about subprime lending, included a quote block about it, and a link to an article about the state of things.

Quote :

"all i know is that i've been reading stories about car loan standards getting stricter in the past six months or so."

You mean, all the free money they used to give out to people that couldn't afford the loans is now gone? Shocker. Thank you for proving my point.

Quote :

"which pretty much negates the original point you were trying to make that automakers shouldn't be using the bailout money to increase their lending and slacken their standards because anyone could supposedly get a loan"

My original point was 'anyone could supposedly get a loan'?

What this is, is a back door way to aid the carmakers in getting inventory off their books by giving the cars away like the did during the consumption days. The numbers will look better to the automaker arms because they book the sale, when the subprime morons that can't afford the loan default, it gets marked against the financing arm, which the government will ultimately backstop with our tax dollars in one way or the other.

[Edited on January 16, 2009 at 5:40 PM. Reason : .]

1/16/2009 5:29:38 PM