Wednesday, October 15, 2008
We Spend Too Much On Cars Anyway
Shouldn't *strategic support* imply actual lending?
GMAC said yesterday it's granting financing only to buyers with scores of at least 700, who represent about 58 percent of U.S. consumers.
A credit score of 700?
I just ran mine a few months ago on one of those free sites. It came it at a mere 690.
Meanwhile, my landlord owes $4,000,000 on four upside-down homes, has no income, has been audited recently (resulting in a 20k fine), and yet his credit score is something like 730.
I have no debt whatsoever - no student loans, no car payments, no mortgage, and nothing on the credit cards.
But my landlord told me he keeps a $5,000 balance on his American Express card and makes slightly-more-than-minimum monthly payments. He told me this was all that was needed to *manufacture* a healthy credit score.
So today he could get an car loan from GMAC while I couldn't.
If any of y'all can't lease your usual fancy new car, remember you can always plunk down a grand or two for a clunker.
Even though the system of credit scoring is a joke, this *credit tightening* has got to be disaster for the owners of GM car dealerships.
Yeah, GMAC's doing real well these days. Must be that star-studded Bear Stearns team they brought in...