Analysts fret credit troubles are spreading to auto loans

[Sapiens]

http://www.nwanews.com/adg/Business/208294/

Analysts fret credit troubles are spreading to auto loans
BY TOM KRISHER THE ASSOCIATED PRESS

Posted on Tuesday, November 20, 2007
DETROIT — Rising delinquency rates on car and truck loans have some industry analysts concerned that subprime mortgage troubles could spill into the automotive finance business.

In a note to investors Monday, Lehman Brothers analyst Brian Johnson said his analysis of auto loan-backed securities sold by Ford Motor Credit Co. and GMAC Financial Services showed some higher delinquency rates for October and September compared with recent years.

“As unemployment remains low, this deterioration in the auto ABS credit conditions may be evidence of a likely spill over of the mortgage woes onto the auto credit world,” Johnson wrote.

[BiscayneSunrise]

Re: Analysts fret credit troubles are spreading to auto loans

Ditto Harley Davidson.

By the way, it isn't interesting that GMAC tried to diversify from the car business by getting into mortgages and in the end found themselves heavily vested in two very sick sectors.

[Sapiens]

Re: Analysts fret credit troubles are spreading to auto loans

Ditto Harley Davidson.

By the way, it isn't interesting that GMAC tried to diversify from the car business by getting into mortgages and in the end found themselves heavily vested in two very sick sectors.

LOL, yes. That's the way of usury. Small industry by the way, in terms of who's who players I mean.

[dbarberic]

Re: Analysts fret credit troubles are spreading to auto loans

Great news... maybe by early spring I will be able to negotiate a great price on a car.

[Sapiens]

Alarm at rising US car loan defaults

http://www.ft.com/cms/s/0/ca3cf880-9...nclick_check=1

Alarm at rising US car loan defaults
By Bernard Simon in Toronto

Published: November 19 2007 23:28 | Last updated: November 19 2007 23:28

US car loan delinquencies have climbed markedly, raising another potential red flag for financial institutions and the automotive industry.

“We are beginning to see deterioration in auto asset-backed securities (ABS) credit conditions,” Lehman Brothers said in a report on Monday, drawing on data from two of the US’s biggest car finance companies – GMAC, 49 per cent owned by General Motors, and Ford Credit.

Delinquency rates on two GMAC ABS issues from this year reached about 0.75 per cent and 0.6 per cent in September and October, far above the rates on similar securities issued in earlier years.

Tom Webb, chief economist at Manheim Auctions, added that the number of repossessed vehicles at the company’s used-car auctions had risen, reflecting an uptick in delinquencies and a larger number of contracts.

Mr Webb said he was not “overly concerned” about default rates among car buyers, given continuing low unemployment.

[Sapiens]

Re: Analysts fret credit troubles are spreading to auto loans

Great news... maybe by early spring I will be able to negotiate a great price on a car.

Who knows, maybe on a house too...

[Spartacus]

Re: Analysts fret credit troubles are spreading to auto loans

why bother? Just get a judge to give it to you for free.

I hear Deutche Bank is a good bagholder in this regard.

Who knows, maybe on a house too...