Auto Lending Problem
As we all know already our economy has been on the downslide for quite some time now and there really are not a lot of signs that things will turn for the better in the near future. Adding to this problem I have read an interesting article about some problems the auto lending industry are facing. Due to the continuing rising levels of unemployment and our sinking economy many people can no longer afford to pay off loans and because of these loan delinquencies the auto lending industry are “feeling the squeeze” as mentioned in the article. Also, although the gas prices have been dropping in the past few weeks, less and less cars and trucks are being sold and this certainly is another factor to why auto lenders are losin out.
Here are several statistics to show this downward slide that the auto lending industry is currently in. Capital One, which we all know is a credit card company and is big in the auto lending sector saw profits drop 11% which is equivalent to $4.4 million. Another business involved in auto lending, AmeriCredit Corp. saw their profits drop by $150 million. I felt like this was a very interesting article and it really does show that all the different industries are being negatively affected by the recession that we are currently in. The link for this article is below
I think that this article does a good job of illustrating how this financial crisis is reaching to aspects of the credit markets that people perhaps thought would be somewhat shielded from the fallout. As the crises continues to worsen I think we can expect to see even more aspects of the credit markets, including credit card lending and even student lending.
While my stock portfolio has certainly been taking a beating I never thought I’d have to start worrying about whether or not I’d be getting my student loan renewed so that I can pay for my next semester at Syracuse. Thank god I’m close to graduating!
zackpien - October 1, 2008 at 3:02 am |
[...] Auto Lending Problem [...]
SuperTurboCar | Krijg Me Magazine - October 1, 2008 at 3:10 pm |
Can you post the link to the article? I’d like to read it and I think you forgot to include it.
Also, is it really surprising to people that the auto industry is being affected by the credit crisis? This was a good article, I don’t deny that, but cars are high ticket items, and you can’t turn on a TV for more that 3 minutes without seeing some car commercial and the great financing offers available. Any industry that specializes in high priced assets that are sold on credit is certainly going to feel this squeeze right off the bat.
I do really like the article though, thanks.
charlesthomas87 - October 2, 2008 at 11:51 am |