Posted on 11/16/2008 2:04:59 PM PST by Reverend Wright
It’s not redlining to be more conservative when the collateral has a lower resale value, which is pretty much the case on domestics vs. imports. The exception had been trucks and SUV’s, but the gas price spike took care of that.
I don't mean to be a ball buster here but are you "Shorting GM and Ford?" For the record I do not own them.........
I leased a new Saturn Outlook, fairly loaded, back in June. I usually don't lease but I was anticipating a big shift to hybrids and plug-ins over the next few years and wanted to be able to walk away from the gas guzzler. Nothing down; don't remember if I got 0% or not, but if not it was pretty close to it.
I am a GM fan and still hope that GM can pull through (without taxpayers paying for it), although that now looks unlikely unless the UAW is ready to come seriously clean. But if that doesn't happen, I'm looking for a silver lining. Might get a pretty cheap three year old car down the road.
I have bought only 2 new cars in my adulthood and I never plan to buy another new one again. I think that buying a new one is a waste of money.
I have 2 personal vehicles right now and I plan to drive them until they die completely. One is foreign the other is domestic, they’re both pretty good vehicles.
I know a couple who has a $650 payment on their vehicle, they have good credit but the husband just lost his job and the wife only makes around 1K a month, those are the situations that are going to be happening more and more.
She has received a 2 month grace period from Ford credit while they work on a plan.
“are you “Shorting GM and Ford?”
Nope, no short or put position. I thought about GM puts about a year ago but decided (wrongly) that they had too much political clout to go under.
The psychological impact of GM going out of business will be huge. And very bad for the rest of the North American economy.
I guess that I see the Detroit bankruptcy story as a metaphor for institutions that used to be world beaters, but refused to deal with their longstanding problems, and were eventually felled by them.
I certainly wish Detroit had reformed itself in the 70’s and 80’s, but it didn’t.
The way it should have stayed all along.
I am looking for a 1 or 2 year old “crossover’. I am hoping to find one that was returned by someone more optimistic than me and that I can get it for a decent price and drive it past 100K miles
The Silverado must be a fun ride, but I imagine it might be tough to parallel park in the City. I'm more in the market for an Equinox, Highlander or Santa Fe.
I assume in a bankruptcy the warrantee holders will be “unsecured creditors”, which is legalese for SOOL. Clearly this will negatively impact the future value of the asset.
Logistics will be a nightmare as well. You’d have to be out of your mind to hook up with an outfit as shaky as the big three.
Still, I say, better a horrible ending than horrors without end. Let them die.
No Leasing at all. Too risky now.
Thats why a high FICO score no longer guarantees a great interest rate. Its all based on a new set of Risk rules.
Agreed. At my bank it pretty much was. Thats why we are still here.
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