I don't agree with your post 100%. GM & F for instance have massive global assets and now large capital loan facilities to use as they need them... And GM for one thing can streamline easily to not even have to use all of the loan facilities available as long as the UAW does the right thing for the long run, and not their short sighted self serving union greed.... But GM stock is worth more than this price easily IMO.
Now about lending, the average American (about 85%) of all working people have a credit score of around 625. The range runs from about 440-880 so 625 falls into high risk/poor column... There are many reasons people may have a lower score and not because of things they did either. My wife for instance is finishing 2nd college degree and those deferred loans show on her credit as past due and not paid and this is not right, as they are deferred, so you can imagine what they did to her score. Remember ANY derogatory made today stays 7 eyars minimum on your report, foreclosures stay 15 years or more and bankruptcies of any kind 10 years minimum... So the chanegs nobody is talkign about publicly with the credit agencies effectively will keep more people looking bad for a longer period to where nothing is going to move or be lent against......
I and my 4 year old son at time were smashed into from rear with utility truck while we were sitting in traffic, were hurt, in hospital, healed for nearly 3 years after and it took that time for insurance company to even pay the damage and debts for medical costs,etc but didn't matter as all those medical bills from accident hit my credit report and though they were paid (when insurance of faulted party finally paid out), will stay 7 years on my credit now giving me a score of only 700 now... My son's settlement (after lawyer's take & medical costs) left very little as we were made to believe would occur, and that money under NC law had to go into a life insurance annuity until he was 18 and we as parents had no legal say as to where those funds go...
These "wonderful" end of year car deal programs out there from lenders only qualify people with FICO's of like 740 or better so most Americans are exempt from them. Now depending on your state (like here in NC) the interest rates are another problem as here direct bank lenders are now charging up to 30% rates, so you tell me, even if a person has working record and even some downpayment, how are they supposed to budget or compete with such exorbitant rates the banks are still charging for car loans? Remember, new car loans have a lower rate but still as in my state it is nearing 10% now for "best credit".. The same banks and other private lenders are charging 16% minimum for used car loans and this makes no sense.
The news experts say we need to stimulate economy for homes and need a 3% fixed rate to get people to buy, then fine- But the banks are not willing to budge for pure greed!!! Same with auto loans (new or used); they are running the interest rates as high as possible because in a banker's feeble small mind they only see & want more money- period!! They do not see that they too need to live on less and still be able to manage their profitable institutions on a lower % rate, so until the banks again stop trying to get more and more, it may allow even more people to come in to buy vehicles as well as homes sitting out there.. Many people able to do so simply are not buying anything needing financed because of the rates the banks are charging..
