I just saw the news that GMAC needs more money to keep afloat.
The U.S. has already injected $12.5 billion in the lender since December 2008 and owns a 35.4% stake in the firm. Now there are talks of another 3 to 6 billion since their sales are so low.
Here’s my plan to repair their slump in sales.
1) Drop the fine print!
If you are going to be honest about your product why hide the important details to get people in the door?
2) **Well Qualified Buyers?**
Let’s be honest here. How many people do you personaly know who fit into that category? With the economy in the shape it’s in we are in hard times so don’t show me a price so low I want to run directly to the dealership and get two. Let’s loose the asterisk!
3) Predatory Lending
You don’t hear that term when it comes to auto financing, but rather often you do in the housing market.
I know these companies are in business for profit but come on 25% interest on a car loan?
If you think rates of 25% APR are high, imagine rates of 250%. Keep in mind that a monthly interest rate of 25% equals 300% APR. If you’re paying $400 a month interest only on a $3,000 loan, after 7 months you will have paid $2,800, which is almost the principle balance, while still owing the full, original $3,000. Read the fine print and think carefully before attempting to get any kind of car title loan. The high interest rates are not worth, and in most cases, you would be better off getting a loan from a friend or family member.