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Well -- next apparent consumer product to be hit by the tight credit market seems to be auto loans as -- more dealers.
Having trouble finding money to lend it to car buyers and to people who we've been one -- -- least joining us now on the phone is Janice -- president of elite auto search hi Janice.
Hi Liz sorry I couldn't be there personally you.
Well I know you're busy trying to get some of your clients many of whom have a good deal of money.
Loans what is going mom Janice are you having trouble getting auto companies to at least make deals with people.
Well this situation is really twofold what we're speaking about -- American car.
It is to be there -- the problem.
Right there hey you know crisis Ford GM or -- getting bailed.
And they decided to hold off on anything or if someone wants to -- the least -- is going to be very very high.
Quite frankly this is it a problem with the American -- -- -- longer than most people are aware and I truly do not believe that that's going the last.
Most people most of my client 95 for that.
-- cars as far as the foreign car market.
My clients are continually believed.
The manufacturing banks are continuing to offer competitive -- is.
But -- we are hearing that a lot of car companies are just stopping the leasing program because the model doesn't work anymore.
Clearly it works in some cases.
Well none of the product that I'm healing list but -- eighties being that you Audi Infiniti.
Aren't those even down to.
Leo that they are still leaping leap is they're still going on.
And as if I run my only is inspected dealers when they.
-- believe me I know whether it believe it proper or not to let it -- interest rates -- -- or not.
And so far I have not seen anything that it made me terribly nervous -- if there.
-- -- consumer and consumers they're taking a little bit longer to make up their mind.
They might be re thinking -- they wanna days and that highlight cards they wanna go get something else.
Although again I have not seen direct changes in that.
Most debate is going to be focused.
On the American car industry -- -- moment anyway.
Janice we're also hearing too that some 700 car dealers have gone out of business out of about 20700.
Here in the United States.
Surely that adds to the pressure I think is as we go forward on.
People looking to you know.
We move -- been in car status or at least get a new one I know my lease is up in a year you you help me get my last -- -- did.
Honestly I'm I'm when -- read and hear everything that I'm seeing and hearing I get nervous that even though I have decent credit will I have trouble getting the least jam us.
Well -- people would -- -- credit with good credit I have not seen any of my client.
Being turned down.
As of yet it again it is it is it is really geared to people with.
Sub prime credit.
And this is the problem and even sub prime lenders who spoke his -- automotive leasing.
Has definitely raised the bar if you've been going on for probably the last seven years.
And in the last -- to it as it accelerated.
And -- people.
Who probably are not be a candidate to begin with anyway don't have enough credit because -- -- you know when you -- -- vehicle.
They're putting far less money down the therefore.
The credit is reviewed on a much more stringent -- this.
Slowly as opposed to -- finance that these people for the most part and to finance their bars.
But a good chunk of America want to have a car every few years.
They want to have a car that police warrant he and above and beyond that they don't wanna put a lot of money down on the car.
They wanna have state of the art safety features and after that they -- -- -- they want something else.
-- Paris elite auto president Janice thank you very much.
Thank you guys can't just make sure you get released next year thanks but it got it let you know have a credited you don't need right.
How did go for like a -- artfully you know rule alrighty alright -- I -- get up for the.
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