Monday, June 16 , 2008
With the credit crunch really reaching full force in the United States, many are defaulting on their car loans, struggling to pay their mortgages and falling behind on secured loan repayments.
As a result repossessions are high and credit is expensive. Many are reigning in their spending and many more are taking the option of new loans very seriously.
In addition many borrowers cannot even get their hands on fresh credit at this moment as credit companies are more cautious aver who they lend to.
New automobiles are one of the main major purchases which consumers take out a loan for. With loans at an all time low, car sales have seriously slumped.
General Motors, one of the biggest and most successful car manufacturers in the United States has really felt the pressure, with sales reaching a 26 year low this April.
Research carried out by China Reality Research, an affiliate of CLSA has shown that mid end models by General Motors are currently the best selling, while General Motors is the third most favoured brand for US motorists.
As a consequence of falling sales, stock has rapidly lost value, reaching a low of $6.13 (£3.14), the lowest price seen since August 1982, at the height of the economic crisis of the eighties.
Stock has been falling rapidly, down 40 per cent since the start of this year. However, experts advise that it has reached a low point and will stabilise before slowly climbing in value again.
Source: http://www.onlyfinance.com/Loans-News/
