Currently the automobile industry is experiencing some of the most dire times in decades and maybe ever. It has been a perfect storm of decreased demand, credit crunches, ballooning inventories, and decrease vehicle margins. However despite what the media might lead you to believe financing or leasing a vehicle is still possible. In fact VW has some of the strongest incentives in years and right now customers can experience some of the best deals ever as dealers struggle to liquidate heavy inventories. Although financing has tightened, financing a vehicle is virtually unchanged for people with credit scores above 600. The auto financing industry did not experience the same problems that mortgage companies did because they have always known that cars are hard to find to repossess, and that they always depreciate. Therefore their loan structure never allowed for incredible losses like the mortgages did when houses were viewed as investments that always appreciated.
Over the next months you will probably see many dealers closing their doors. I would predict that most of these dealers will have domestic franchises. The optimist in me sees these days a great chance to expand our dealerships as stuggling dealership go up for sale. Hopefully people will ingnore the gloom and doom media and purchase a vehicle during these times when the best deals can be found.
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