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Bankruptcy Attorney Joins President Obama's Advisory Panel on GM, Chrysler

[Mar 14, 2009.]

 

The woes of US automakers GM and Chrysler are highlighted by Bloomberg's report of President Obama's s decision to add attorney Matthew Tillman to his advisory panel on the distressed automakers.  March 31 is the deadline for the embattled automakers to present plans demonstrating their ability to regain solvency and to repay government loans.

Depending on the contents of the automakers' proposals, consumers could benefit with program incentives designed to bring buyers back to the sales lots of Chrysler and GM dealerships. Although the Detroit News reports that auto loans have reached their highest rates in 25 years, it certainly appears that struggling auto companies could face their own demise if they don't come up with a plan for providing low interest auto loans and other incentives for generating sales.

Low Interest Auto Loans: Don't Stop with Dealerships

Today's tight credit climate likely requires good to excellent credit to for getting low interest auto loans, but it can pay to shop around. Consumers can comparison shop with  financial institutions to compare rates on auto financing. Options will be fewer with bad credit, but it's important to keep in mind that interest rates are not the only consideration when seeking savings on an auto purchase.

Before setting foot on a car lot, the Boston Herald suggests doing plenty of comparison shopping between dealerships and also to compare deals on new cars and used cars. When comparing the actual cost of buying a car, it's important to factor in the down payment, dealer documentation and registration costs, and the terms of financing. Depending on local sales tax rates, traveling to a dealership outside of an urban area can potentially increase savings. 

Bad Credit? Savings may be Possible

Depending on what happens with individual auto makers, it's possible that ongoing cost-cutting trends could expand to consumers with fair to bad credit.  Models may be discontinued, or that auto dealerships will be consolidated. Bad news for the auto companies may portend good fortune for auto shoppers. Although there's no way to know for sure, incentives for selling discontinued models and liquidating inventory could set the stage for more flexible auto loan terms offered by auto makers and dealerships. In the meantime, shopping auto loan rates online can provide an idea of what it will cost to finance a new or used car. GMAC's website notes that shopping local rates can facilitate negotiations for getting the best deal on purchasing a car and getting an auto loan.

 

About Author:

Peter Andrew has been writing about -- and for -- business for more than two decades. For the last couple of years, he has found himself increasingly specializing in the U.S. financial sector.

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