04-30-2008, 04:59 AM
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Engineering first
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Real Name: Bob
Location: Huntsville, AL
Hybrids: Prius Classic 03
Posts: 4,746
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Upside down loans: Hummmmm
http://www.detnews.com/apps/pbcs.dll...ON03/804300309
Quote:
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America's love affair with easy credit and cheap gasoline has hit a dead end.
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More than a quarter of borrowers now have auto loans that are upside down -- the vehicle is worth less than the loan balance. In March, 32 percent of consumers buying a Hummer had a loan on their trade-in that was upside down, according to edmunds.com. At Land Rover, 22 percent of trade-ins were worth less than the original loan, up from 16 percent a year ago.
Like stock prices and home values, sales of luxury cars couldn't climb forever. New car demand has slumped 8 percent this year, with some luxury brands suffering deeper declines; Acura is down 14 percent; Bentley, down 21 percent; BMW, off 13 percent; Land Rover, down 14 percent; and Jaguar, dipping 18 percent.
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I take no joy in this but it was inevitable.
Bob Wilson
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