Credit Crunch Aggrevates Slow September Killing Sales

US auto sales plunged nearly 27 percent in September to less than 1 million vehicles as the credit crisis kept many would-be buyers from getting loans and the Wall Street meltdown further undermined consumer confidence.

The sales slump adds to the pressure on the nation's struggling automakers, which have been battered by high gas prices and the implosion of the housing market.

The dramatic drop in vehicle demand also has forced some big dealers to close their doors, while tight credit markets are hampering automakers' efforts to help dealers consolidate.

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Htay7500 - 10/3/2008 9:21:25 PM

+1 Boost

Agents, have you posted anything subarus sales in september yet? NASIOC already has it, and apparently, Subaru is 4% up! (yay subaru!)

Htay7500 - 10/4/2008 7:16:20 PM

+1 Boost

correcto.

enp83 - 10/3/2008 10:35:13 PM

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Theres no credit crunch if you have a semi respectable credit history and a semi sizable down payment. If you're credit rating is trash and you have zero money for a down payment, then ya you might be having a hard time getting credit right now...AS YOU SHOULD BE!

gooch - 10/6/2008 10:56:45 AM

+1 Boost

Wrong -- I have seen people with ratings of 700 be turned down, because they were carrying a large debt burden.

SixxFive - 10/3/2008 10:43:00 PM

-1 Boost

There is no credit crunch/collapse for people who know how to be responsible with their finances.

Threepoint1415926 - 10/4/2008 1:20:51 PM

+3 Boost

That's just not true. Just got off the phone with one of the guys over at Countrywide (now Bank of America). Right now, underwriters just wont approve jumbos if in the last three years you were not perfectly consistent, no matter the score. He gave me an example of a well known car dealer here in Denver. He wanted to get a loan for a $2M house. He had a $1M to put down on it and made over a million a year. He couldn't finance the other half of the house. Last year, his company received a commercial loan to expand their lot and for that year alone, it decreased his AGI. It's actually FHA that are the easiest to get into now, not conventional. Every week the D/I decreases for conventional right now. I think it just hit 40%. You could have an 850 fico, but if you've got student loans and a car payment, and you're trying to get into a simple condo on a conventional loan, it's not going to happen right now. You have to go FHA, there is no other way to do it.

gooch - 10/6/2008 10:59:48 AM

+1 Boost

Thank you. You've stated it in a far better way than I could. The credit crunch is real, and for those of you thinking "I manage my finances, I pay my bills on time, all the bad credit people can eat cake," well, that's all well and good, but when you go try to get a major loan (house or car or large business) on your 700 or above score, let me know how it works out.

tattedtwice - 10/4/2008 12:41:54 AM

+4 Boost

Some people need not be so cocky and self-righteous. Remember, we're in a bush'd economy right now and no one is immune to financial hardships. Companies are closing and/or laying off everyday, sometimes without warning; the ignorant @ssholes calling people 'irresponsible' need to keep that in mind before they pass judgment.

tattedtwice - 10/4/2008 12:44:01 AM

+1 Boost

I don't give two squirts of p!ss about the dealerships and banks being affected and closing as a result of hard times. Good, I say; now that their income has been interrupted, let's see THEM pay stuff on time.

enp83 - 10/4/2008 3:36:12 AM

+1 Boost

http://www.youtube.com/watch?v=1RZVw3no2A4

Htay7500 - 10/4/2008 7:09:38 PM

+1 Boost

Both of your videos do not suprise me.