Show Entire Article
It has been nearly two months since the Wall Street meltdown and the credit crunch shook up an already unstable automobile industry.
The bad news for consumers is that despite federal bailouts to banks and automakers, the buying landscape has changed and may never return to what shoppers have come to expect in the last five years.
But if you need to buy a new vehicle in this environment, here's what you can expect:
1. End of 100 percent financing. Those 100 percent finance deals are virtually gone. This is particularly true of those "we'll pay off your trade no matter what you owe" negative financing deals. They were to the auto industry what subprime mortgages were to the housing industry. Lenders still in the automotive market are demanding down payments of 10 percent to 15 percent from most buyers, including those with better-than-average credit.
2. Restrictions on zero percent financing. Although buyers will continue to see ads for zero percent financing, fewer shoppers will qualify for those loans. Unless your credit score is above average -- more than 700 in most cases -- don't be surprised if the dealer says you can't get that attractive finance rate and instead offers something in the 7 percent to 10 percent range.
Page 1 of 4 | Next PageShow Entire Article
More Top Stories