May 5, 2009 by My Carlady
GMAC to FUND CHRYSLER AUTO LOANS
CHRYSLER, JEEP and DODGE dealers may finally get some much needed life support in the area of auto loans for their credit needy car buyers.
Credit scores and auto loan availability have been the most significant factor challenging the car business in general and especially Chrysler Financial, the lead credit resource for most Chrysler, Jeep and Dodge dealerships around the country. Traditional banks, credit unions and auto finance arms of commercial lenders have distanced themselves from Chrysler products over the past six months as bankruptcy proceedings loomed large.
GMAC to the rescue. GMAC and Chrysler Financial are both owned by Cerberus, the private-equity firm which owns Chrysler. As cash-strapped Chrysler Financial has been unable to offer much in the form of financing options, GMAC has been offering dealers lending agreements to pick-up the void left by the bankruptcy. While they have only begun the process of vetting dealers, they have yet to fund a Chrysler, Jeep or Dodge new car loan, however, you can bet when the light turns green, the dealerships will be full throttle to get their customers financed before the money runs out.
In the meantime, Chase is financing the promotional interest rate incentives offered by Chrysler. Their eligability requirements have been tied to stringent guidelines requiring buyers to have over 700+ FICO AUTO SCORES, 50% debt to income and some cash down to insure the lender of a positive equity position on any Chrysler, Jeep or Dodge product.
The ability to get auto financing has hampered many car buyers, especially those with minimal cash down, average FICO AUTO scores and negative equity in their trade-ins.
The trade-in negative equity has come from market conditions devaluing gas-guzzler and luxury models flooding the market as job layoffs force consumers to repossess the vehicles they can no longer afford.
The reluctance of the lenders to finance above wholesale book or invoice on a NEW DODGE, CHRYSLER of JEEP, has turned the negative equity of an “upside-down trade” into a cash down must. The average FICO AUTO score of 620 has added insult to injury for many potential car buyers, offered high interest rate loans which push their debt-to-income ratio close to the edge.
GMAC has intimated an open-mindedness toward the 620 Auto score credit consumer. While a willingness to finance a 620 consumer at a reasonable interest rate is a welcome relief to Chrysler, Jeep and Dodge dealerships, the trade-in and cash down may still frustrate some potential buyers.
Consumers need to be aware of their trade-in payoff, value position, credit score and cash availability before rushing to the car lot. There is a perception that dealerships are “giving cars away”, and while there are great deals out there, the relationship between credit, equity and cash are paramount to driving home in a new car in today’s market.
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NEED AUTO FINANCE HELP or CREDIT report repair. CLICK HERE: It’s a free consult and they do the right thing by you, fast, easy, cheap.
Top learn more about getting your best car deal click here: CAR DEALS
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
Category: Auto Finance Loan, CHRYSLER, CUMMINS DIESEL TRUCKS, Credit Report Repair, Credit repair, DODGE, JEEP, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
Tags: auto financing, bad credit auto loans, Chrysler financial, GMAC, second chance financing
May 4, 2009 by My Carlady
Chrysler, Jeep and Dodge are in the beginning of a pre-packaged bankruptcy. The judge has already approved $4.5 billion dollars in loans yet the car company has already told dealers there will be NO PRODUCTION during the two month BK process. Dealers have inventory, but not enough of the models that sell well. Hence, the opportunity to put additional sales on the books during the 60 day hiatus is lost to factory freeze. Dealers placing orders today are being assured their cars will be built this summer as 2010’s, but probably won’t reach the showrooms ’til fall. Given the standing supply and consumer uncertainty, will Chrysler amp up rebates to help dealers clear their lots, or leave them to choke on slow-movers ?
The biggest question daunting the public and the government appointed car czars (who masterfully designed the BK) is “will American car buyers trust a car company salvaged by the government, to make a reliable, safe, quality vehicle at a reasonable price? IS FIAT’s reputation for building cars that don’t break? What Chrysler has never understood is repeated visits to the dealership for repairs, even under warranty, is not a plus in the mind of the consumer. For our loan money, are we getting a truly competitive car or just one that returns a profit to the shareholders, now US.
The car buyers I work with are buying new and used Toyota, Honda and Nissan products, or their high-line luxury brand sisters. The car shoppers I know rarely ask me to get them a price on a Dodge, Chrysler or Jeep, after owning one with one too many problems. The Cummins Diesel problems of 2007, and 2008 involving the EPA required ultra-low sulfur fuel and DPF regen systems have destroyed the holy grail of Dodge profit; the RAM 2500/3500 Cummins Diesel. Will the government back the failed turbos, DPF’s and emission systems of the Dodge Cummins? President Obama has repeatedly said the factory warranty will be backed by the government and parts will be available. Great. Will there be any Chrysler, Jeep or Dodge dealers left to do the work? This week in Las Vegas, the second, and remaining Alpha (Chrysler, Jeep, Dodge) dealership closed. I expect it will take more than President Obama seen riding in a Chrysler 300 Presidential stretch limo to convince consumers Chrysler is the real deal.
Adding another question mark to the equation of life after BK for Chrysler; Will the new 2010 NHTSA five star safety crash test ratings spell trouble for the release of the newly redesigned Jeep Wrangler, or launch of the 200 and EV-SUV Nitro? Chrysler’s history of 5 star results have been mixed at best.
If consumers don’t belly up to the bar when Chrysler emerges from bankruptcy, will the factory continue the heritage of rebates, 0% financing incentives and lifetime warranty giveaways that fostered two decades of buying the business? WIll Chrysler Financial, have the restored luster and deep pockets to buy the auto loans consumers need? If CFC isn’t part of the reorganization, with specific benchmarks to meet, give the $4.5B back now.
These are but a few of the many issues facing the Pentastar behemouth, many wonder if it’s worth saving? What do you think?
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NEED AUTO FINANCE HELP or CREDIT report repair go to www.ecreditautoadvisor.com tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
Top learn more about getting your best car deal click here: CAR DEALS
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
Category: CUMMINS DIESEL TRUCKS, Car rebates and incentives, Credit Report Repair, Credit repair, DODGE, FIAT, Honda, JEEP, LEXUS, NISSAN, SERVICE CONTRACTS & WARRANTIES, TOYOTA, USED CAR SPECIALS, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
Tags: 0% auto finance, 6.7l dodge cummins problems, buback dodge diesel, CHRYSLER Bankruptcy, cummins diesel 2500, DODGE BANKRUPTCY, dpf-delete, FIAT, Jeep bankruptcy, lemon law cummins
April 29, 2009 by My Carlady
KIA SOUL REVIEW AND TEST DRIVE VIDEO
Kia SOul FUN
The 2010 Kia Soul is flying off the dealer showroom floor, a bright spot in an otherwise dismal selling season. While gas prices are low, consumers are enamored with the 27/31 MPG along with the roomy interior, clever styling, 10yr-100k factory warranty and $14,000 entry price. The car arrives as a manual or automatic 1.6L 4 cyl and options to the 2.0L 4 cyl, similar to many models in this entry level category. Kia packages the upgrades in clever names, (not): Soul, Soul Plus, Soul Exclaim and Soul Sport. Power windows, door, tilt, cruise, cd are standard on the Plus, with alloy wheels, fog lamps and keyless entry on the Exclaim and Sport model. The Sport also offers a two-tone red/black interior, ground effects and rear deck lid spoiler.
Kia packed the SOUL with the “must have” features on the GenerationNOW shopping list. The front end steals from the Mini, while the back is pure Element. The overall shape borrows heavily from the Scion XB, and soon to be shadowed by the Nissan Cube, debuting May 5th.
The highlights include the stereo with a unique MOOD button which turns the sound system into a nightclub with bouncing lights in the speaker cover thumping to the bass. The regulation iPod jack sits next to the USB port found in many luxury brands. The cloth interior is wash and wear in two-tone herringbone or red/black for the sport model. Six side and front airbags might help the KIA SOUL obtain high marks with the new 2010 NHTSA crash tests, which include new t-bone and wrap-around collision tests, rollover and off-set frontal all considered in one rating. It’s test results have not been released at this writing.
Handling is tight, as the wheel base is small and the 18″ tires grab the road. Be aware the 0-60 is slow to get going and acceleration is best at 35+mph. However, this aerodynamically-challenged design allows shifting wind currents and large trucks motoring by, to push the Soul around. AT anything over 70mph the car shakes through the steering column into your silver fillings. It settles out at 90, but maybe I was flying by then. The road and wind noise will annoy the older adults on a long ride, but the young drivers won’t notice with the stereo blasting XM/Sirius.
There are lots of decor accessories available to push the price point up to $20,000.00. Credit to KIA offering a first time buyers program and 0% for 36 months for a limited time, strong incentives unheard of for a hot car making it’s debut this month. Kia dealers are playing fair and cautious with the SOUL, sticking to MSRP pricing and minimal accessory loading in the initial introduction.
Sales reps report a wide range of buyers are visiting the showroom, many consumers are considering KIA for the first time.
To see more test drive reviews from MYCARLADY: CLICK HERE:
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NEED AUTO FINANCE HELP or CREDIT report repair go to www.ecreditautoadvisor.com tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
Top learn more about getting your best car deal click here: CAR DEALS
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
Category: AUTOMOTIVE, CARS, Credit repair, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
Tags: KIA SOUL, MSN FIRST DRIVE, MYCARLADY YOUTUBE TEST DRIVES, NISSAN CUBE, TOYOTA XB, TOYOTA XD, YOUTUBE TEST DRIVES
April 5, 2009 by My Carlady
Las Vegas, NV— The latest effort to reassure consumers it’s a GREAT TIME to buy a new car comes from Ford, AutoNation (limited release) and General Motors. Following in the hugely successful tracks of Hyundai, each car company has a version of payment protection for the car buyer.
Ford will pay up to $700.00 for 12 months, Hyundai goes 6 months and $500.00 and GM is in the middle at $500.00 for 9 months. The AutoNation test strategy in Florida is up to $500.00 a month for 6 months.
The consumer reaction has been strongest in Hyundai showrooms, perhaps an indication of the Hyundai customer profile being one of workers, not business owners. That said, the Ford plan cuts across consumers, attracting many trades people loyal to the F150. DO union construction workers get to claim if laid off when job sites are finished? and more importantly…
The question remains; Will GM honor these program commitments if it is forced to file bankruptcy? and What of the protection plan if Saturn, Pontiac, Saab or Buick brands go away?
- 2009 saturn vue
The AutoNation plan is backed by a third party warranty company located in Illinois. The value of each contract is said to be approx. $3200.00 No such insurance policy backing has been identified in the case of GM or Ford, yet Ford is the only Big 3 automaker to be bailout-loan free. Chrysler, Toyota, Nissan, Honda and Kia have thus far remained out of the payment promise plan.
In addition to promises of payment protection for up to a year, GM and Ford now offer 0% interest on certain vehicles, with finance terms ranging from 36 to 72 months. Chrysler offers 0% interest (but no payment protection initiative unless you live in Florida and purchase from an AutoNation dealership before June 1, 2009.) Note these are on 2009 models of varying popularity, supply and approved credit.
For now, consider these valuable offerings as a strong incentive to buy a new, more fuel efficient vehicle, while doing your part in the economy stimulus plan.
- Payment protection up to 1 year.
- 0% Interest rates up to 72 months.
- REBATES up to $6,500.00 on many models.
- Factory warranties up to 10 years/100k miles to first owner.
- AUTO Sales Tax deduction on new car purchases this year.
- USED CAR trade-ins highly sought after by consumers and dealers.
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NEED AUTO FINANCE HELP or CREDIT report repair go to www.ecreditautoadvisor.com tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
Top learn more about getting your best car deal click here: CAR DEALS
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
Like interesting blogs: http://alphainventions.com
Category: Auto Finance Loan, CARS, CHEVROLET, CHRYSLER, Credit Report Repair, Credit repair, FORD, GMC, HYUNDAI-pronounced hun-DAY, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
Tags: auto sales tax credit, car payment protection, CHRYSLER Bankruptcy, Ford payment protection, gm bankruptcy, gm payment protection plan
March 16, 2009 by My Carlady
Las Vegas, NV– 
Got questions about shopping for a new or used car and don’t know who to ask. My Carlady is an impartial auto expert with 20+ years of auto industry experience.
I know the car shopping/buying process is often described as horrific, confusing, nauseating and tiresome. Currently there are over three thousand different makes, models and packages to choose from, and that’s just for 2009 new car selections. Add to the hysteria ten years worth of used cars available from new car dealerships, used car lots, rental agencies, auctions and your neighbor. Add to this mounting pit in the bottom of your stomach the X factor. I call the X factor the tremendous number of poorly trained, disaffected, limited business skills car sales representatives tasked with helping you find the car of your dreams. Forget that the average NEW car costs $19,000.00 today.
Now I’ve been both the consumer and sales person in auto dealership’s for most of my car career. The majority of that time I was the only woman on the show floor. In many cases I was the only certified sales representative, and most recently, the only WBENC-certified (Women Business Enterprise National Council) business owner dedicated to automotive consulting.
So it is with great humility, that I offer my services FREE of CHARGE, to help you sort through all the choices, rhetoric, web-blogs, and corporate propaganda to answer the questions you want to ask about car buying. I, Sarah Lee: the MY CARLADY of MY CARLADY, have decided to become the ASK DAVE TAYLOR of the car business. (Imitation is the sincerest form of flattery) This section of the website I call: ASK MY CARLADY: You can ask me anything about cars. I’ll offer you advice on car buying, car prices and dealer incentives. Do you want to know about auto loans, second chance financing, 0% interest rates and your credit score? Should you buy a dealership warranties vs. certified cars? Want to know what’s the difference between used cars and pre-owned cars? Nothing, they’re the same! Should you believe manufacturer advertising? Ask MYCARLADY about car insurance, body shop repairs, manufacturers’ suggested service intervals? Do you know want to know the true difference in cost between hybrid vs. gas engines ? Did I get a good deal? Should I buy the warranty? Should I lease or buy this car? Is the seller is charging too much? What you should do after the sale when a problem occurs? and How do you get an issue resolved between you, the dealer and the factory? I’m not a lawyer or a mechanic, but give me 24hrs and I’ll get you the answer, even if it’s a tough or complicated question. Consider me the 911 on a car deal.
Now let’s be honest, I can’t fix everything. This is an ADVICE column. I can give you suggestions, maybe offer an alternative or two, but I’m not going to mislead you into believing I’m the all-knowing Carmack (sorry if I’m dating myself). I’ll do my best to answer your emails questions as quickly as possible.
You can email your question to askmycarlady@mycarlady.com or you can Twitter me in 140 characters or less @mycarlady.
I’d really love you to follow me on Twitter (@mycarlady) so I can post the answer to your question so everyone gets the benefit of the information, but I WON’T share your name, I promise. You can also post your question as a comment on this blog and I’ll reply below.
If you know someone car shopping, please pass this along because I know many folks don’t know who to ask, or even WHAT to ask when car shopping or buying. Welcome to the beginning of what I hope will be a great addition to the My Carlady website. Free CAR Shopping+BUYING +Servicing Support from My Carlady.
Category: AUTO BODY SHOPS, AUTO REPAIR, AUTO-CAR INSURANCE, AUTOMOTIVE, Auto Finance Loan, CAR CARE, CARS, CARS I OWN, Credit repair, FUEL ECONOMY, Hybrids, LUXURY PRE-OWNED CARS, RECALLS and Buybacks, Repair, SERVICE CONTRACTS & WARRANTIES, USED CAR SPECIALS, USED CROSS-OVERS, USED SUV's, USED TRUCKS, USED VANS, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
Tags: ask my car lady, car buying advice, free car buying tips, Leasing
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