Auto lenders push to add car loan debts to bailout

[Joanne98]

Strain on vehicle sales
But auto lending firms are lobbying to have car loan-backed debt covered by the bailout as well.

Sen. Charles Schumer, D-N.Y., said during Tuesday’s Senate hearing that the auto lending market essentially had been closed to buyers with credit scores of less than 720 — generally considered an excellent grade. Over a year, Schumer said, such limits would shave 6 million vehicles, roughly a 35% drop, from typical annual sales of 17 million.

“Even though the workers in Buffalo and Detroit and St. Louis are blameless, they will suffer,” Schumer said.

The American Financial Services Association, a trade group of lenders, said in a statement Tuesday that the plan should be expanded to cover auto finance companies and car loans.

“As a result of the ripple effect of the credit crunch in the mortgage sector, the ability of finance companies to secure credit lines from investors has been brought to a virtual standstill,” said AFSA President and Chief Executive Officer Chris Stinebert. “Absent intervention by Congress, the ability of domestic manufacturers to finance new motor vehicle sales may come to a halt.”

Linda Becker, a spokeswoman for Chrysler LLC, said the company was looking at the proposal. GMAC spokeswoman Gina Proia declined to comment on the request, saying GMAC supported any move that would stabilize markets.

Ford Credit spokeswoman Brenda Hines said the company was not involved in any talks on the Paulson bailout plan.

Paulson said the treasury eventually would make some of the $700 billion back when it sold the assets it plans to buy, and that unfreezing credit markets would provide the most relief to all homeowners.

“The American taxpayer is already on the hook,” Paulson told a hearing of the Senate Banking, Housing and Urban Affairs Committee. “The best protection for the taxpayer and the first protection for the taxpayer is to have this work.”

http://www.autoincar.com/auto-lenders-push-to-add-car-loan-debts-to-bailout/

[dipsydoodle]

1. They are having what is colloquially known

as a fucking laugh.

[Indenturedebtor]

2. Until they address the income distribution issue this is all a waste of money

We don't need more potential to accrue debt so much as consumers need more real purchasing power.

[opihimoimoi]

3. Hey, wait for the Yacht Loan Debts.....$29 billion in bad debts must be added too

[magellan]

4. They lowered the credit standards to risky levels, got caught out, then raised

...the standard beyond most people's reach, and now they want US to bail them out?

Same two little words go for them as the Morgan Stanleys of the world.

Fuck off.

[NightWatcher]

5. why dont we bail out car title loans and payday advance loans while we're at it

as well as student loans and everyone who still owes Columbia House for tapes never purchased back in the 80's (19 for a penny, my ass)

[PetrusMonsFormicarum]

6. Bailout for Hummer owners only!

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