Bailout Watch 348: Chrysler Financial Hoovers $1.5b, Offers 0% Financing to 620 FICOs
Automotive News [sub] reports that President elect Barak Obama is calling on automakers to develop sustainable business models. Aparently, it would be unacceptable “to keep them on their lifeline through taxpayer dollars in perpetuity.” Although Obama admits he’s not an industry “expert”, he claimed making the bailout work means everybody, “from labor to management to creditors to shareholders, giving something up.” Specifically, taxpayers will now be sacrificing $1.5b to Chrysler Financial. And yes, it’s coming from the second half of TARP, so it has the O-man’s blessing. And so… “Zero percent interest financing will be [immediately] available on 11 Chrysler LLC vehicles, and in many cases for up to 60 months. Vehicles included in the program are Chrysler Town & Country, 300 and 300C, Jeep Grand Cherokee, Commander, Wrangler, Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty.” Oh wait, that’s our sacrifice too. And isn’t this how we got in this mess in the first place?
Just to note-I'm giving BO a pass on not being an automotive expert. For wasteing our money-no way. jgh-ya, probably. wsn-great idea...in our dreams. Bunter
Why is everyone so unhappy ? With the Bank Bailout, at least insisting on a 620 FICO for car buyers reeks of sound lending. That's a lot more than we expected of the banks, for the billions they got. Detroit is getting scraps from the table, like a family dog. The finance industry is having a food orgy on the table above. You are outside, in the cold weather, looking in.
We've done about all we can with low interest rates and easy money to boost the economy and we're getting into a "can't push on a rope" situation. I think this Hyundai TV ad is pitch perfect in how to get customers into the showroom in early 2009. http://www.youtube.com/watch?v=bVAWviuVmK4&feature=related http://www.measuringupblog.com/measuring_up/2009/01/were-all-in-this-life-boat-together.html Maybe some customers can't get financing, but many more could buy today, but don't because they're worried about losing their job.
Seth L, there is a new Magnum wagon at the Chrysler dealership near me (north Toronto). Better still, the front end closely resembles the 300 (which makes it look waaaay better). And the salesmen are ok too! (Not a paid endorsement.)