With global markets in a panic, new-car showroom traffic is down. And so dealers (perhaps even more than normal, if that is possible) hate the idea of turning away would-be buyers for lack of credit.
In that frame of mind, any story on our Web site about new restrictions on credit availability draws fire. A story that captive finance companies and other lenders are limiting 72-month loans certainly did.
“Don’t they understand that it’s payment, payment, payment for most people?” asks Sales in LI.
255205 says “Just to make a payment attractive, 72 months are about all most buyers can afford. If a captive finance company won’t buy loans on their own vehicles, why would people buy them?”
trummi thinks underemployment is the root cause of the sales downturn. “People no longer have the buying power they once did due to salaries being eroded.”
But GMAC is not the only captive lender getting bashed.
Donald took exception to Toyota Motor Sales President Jim Lentz’ remark late last week that TMS is not losing customers from any lack of credit. “Is he serious? He should talk to a few dealers about [how] Toyota Motor Credit has tightened up over the last three months.”
So how about it, dealers? What's your situation and how are you dealing with it? Any tips you'd like to share with others?