Daily Archives: Nov. 3, 2008

Perception isn’t always reality

Last week, we told you that there’s plenty of financing available to buy a new or used car in Wichita, according to local dealers.

Today, the Kansas Automobile Dealers Association joined the cause, urging potential buyers to ignore “recent news” leading consumers “to believe that funding is not available,” a favorite refrain among some retailers who don’t like to think about the growing sense of caution among consumers, uncertain about their jobs, watching salaries stagnate and retirement plans evaporate.

The facts from the Wichita dealerships are these: Consumers with questionable or mediocre credit are getting turned down at some – but not all – Wichita dealerships. Some, like Wichita’s Rusty Eck Ford, are getting buyers approved with credit scores in the 400s, through the bundling of car loans – asking banks to take on lower credit customers in exchange for several high-credit deals.

It’s a little like housing: Good idea to have some equity in your pocket,  and don’t expect a good no-money down deal.

So the release, in essence, is true: There’s financing out there for car deals, and the probability of more as the credit crunch eases. But if your credit isn’t spotless, be prepared for a turn-down or two and look toward the bigger chain dealers, who have financing options driven by sales volume.

How Spain is dealing with its mortgage crisis

Spain, which has been creamed by a deflating housing bubble, today said that the unemployed can defer half their monthly mortgage payment, up to $640 ($500 euros), for two years. The government will guarantee the rest. This applies to people with mortgages of $217,000 and below (170,000 euros) which is just above the national average.

On the face of it, this looks expensive, but helps both those who are having problems paying their mortgage and those who lost their jobs.