Will the sub prime mortgage crisis affect car sales?
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Having purchased two homes in my life (both of which I still own, even after trying to sell one for a year), I am naturally curious about how the sub prime mortgage crisis will end.
Undoubtedly, standard Fixed Rate Mortgages will be harder to qualify for, and that is probably A Good Thing.
The question I have is about car sales. It seems to me that people who are in danger of losing their houses will stop making their car payments before they stop making their mortgage payments. If too many new car loans go into default, will that make it harder for the average Joe (or Dorri) to get a car loan? If nothing else, it seems that it will make interest rates go up.
The bright side is that there ought to be plenty of repossessed cars available for sale. You can park them in front of the house you bought in foreclosure.
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March 28th, 2008 at 1:09 pm
I was listening to the radio the other day and, I think it was Glenn Beck, said something along these lines. However, he looked at the other end of it, actual sales. He’s thinking car sales will slow as people have no money (and no equity) to go and buy new (or used) cars. It could mean greater incentives from manufacturers (hmmm…maybe a nice new 135i in my driveway) or depressed prices on the secondary market (even better for finding me a ‘new’ e28).
December 24th, 2008 at 8:06 pm
well, hi admin adn people nice forum indeed. how’s life? hope it’s introduce branch