Toyota NA Veep Jim Lentz: Credit Crisis? What Credit Crisis?
Perhaps Toyota Sales Chief Jim Lentz would like to type the words “credit crisis cars” into his Google bar. Because Jimbo doesn’t think that credit’s the main problem with a U.S. new car market that’s pretty much stopped dead in its tracks. “The vast majority of our customers are able to get approved for loans,” Jim Lentz told The Detroit News after cutting the ribbon on the ToMoCo’s new research-and-development center in Michigan. “In our case, credit is not the biggest challenge. Our biggest challenge is consumer confidence.” Ah, in our case. You know, for the automaker who could STILL buy BOTH Ford AND GM with their projected 2008 profits. That said, Lentz isn’t the only one who says you want a loan? We got loans! “‘There’s no issue at all with above-average credit,’ said Alan Helfman, owner of River Oaks Chrysler Jeep in Houston, adding that he is also still doing deals for customers with bad credit, albeit fewer than he was a year ago. ‘Hurricane Ike was a bigger problem for us than the credit crisis.'” You ain’t seen nothin’ yet Al. Or, if you have, you better get used to it. Just sayin’
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1996ME> Wow...I always thought car prices relative to income were CHEAP compared to the rest of the world. I have read many places on the internet ("I read it on the internet, it must be true!") that US car sales are subsidized by europe, south america, etc. Not true??
Used cars typically see stronger residuals in "normal" economic downturns where credit is still available, but people are pinching pennies. However, given that there is no credit and auto companies are making up for it with deeper discounts, I would assume that the used car market may actually get hurt in this market. It is likely that both Honda and Toyota will see drops in residuals (Toyota more than Honda). It is likely, however, that the residual drops will be less bad at Ford and GM for their newer products and SUVs vs. the industry since everyone is so price sensitive in downturns. And when I say less bad, it's like falling 15 feet or 20 feet - either way, you're not doing great...