Frank Witsil Detroit Free Press Published 11:48 AM EST Feb 15, 2019 Phaedra Wainaina, a new Wayne State University Law School graduate, lost her job as a legal researcher, and during two months of unemployment, her bills — an car loan, auto insurance, rent, utilities, childcare, food and student debts — were overwhelming. "I had to make the decision between paying car notes and buying food,“ the 26-year-old single mom said. She defaulted on her 2010 Chevrolet Equinox loan and the SUV was repossessed. "I am considered someone who has higher education and still got behind." More than 7 million Americans are now at least three months delinquent on their auto loan payments, the benchmark for many lenders to trigger a repossession, and, experts say, that stat is setting off a bright red warning light. In fact, according to the Federal Reserve Bank of New York's report released Tuesday, the number of these … [Read more...] about Americans behind on car loan payments, economists fear recession
Detroit trading auto loans
Sections SEARCH Skip to content Skip to site index Business Day Subscribe Log In Log In Today’s Paper Advertisement Supported by ByJack Ewing Oct. 26, 2018 President Trump has said he started a trade war to create jobs in America. But foreign carmakers that employ thousands of workers in the United States are gauging whether tariffs, the main weapon in that war, may compel them to shift jobs to, of all places, China. Carmakers’ early hopes that congressional Republicans who favor free trade could restrain Mr. Trump have faded. Instead, manufacturers are girding for a protracted period of conflict that will disrupt supply chains and change the companies’ calculations about where to expand and where to cut back. BMW, the largest exporter of cars from the United States, has already moved some production of its popular X3 sport utility vehicle — once made exclusively in Spartanburg, S.C. — to a factory … [Read more...] about Trump’s Trade War May Create New Auto Jobs. In China.
Keith Laing The Detroit News Published 12:02 AM EDT Oct 11, 2018 Washington — Car buyers who already are reeling from high sticker prices are finding it harder to afford new vehicles as interest rates continue to rise. The average annual percentage rate for a new-car loan was 5.8 percent last month, up a full percentage point from September 2017. In real terms, that means someone taking out a five-year, $30,000 car loan would pay $828 in additional interest over the course of the loan: $4,632 in interest payments vs. $3,804. The last time the average interest rate for a car loan was above 6 percent was January 2009. "It's a major concern for us," said Wes Lutz, the president of Extreme Dodge Chrysler Jeep Ram in Jackson, who also serves as chairman for the National Automobile Dealers Association. Lutz said rising interest rates — combined with rising vehicle prices — are beginning to hurt new-car … [Read more...] about Auto consumers feel pinch as interest rates rise
Daniel Howes The Detroit News Published 11:57 PM EDT Oct 10, 2018 For the second straight day, Ford Motor Co. shares closed below $9, thanks to uncertainty about its restructuring and investor fears that rising interest rates are further slowing the lengthening auto cycle. The Blue Oval is not alone. Even as Ford shares are off nearly 22 percent since mid-April, shares in electric-car maker Tesla Inc. are down 32.3 percent since their "go-private" spike in August. And stock in high-flying Fiat Chrysler Automobiles NV is down more than 33 percent since mid-April. Crosstown rival General Motors Co. shares continue to tread water, trading just pennies below the $33 per share investors paid in the post-bankrupt automaker's November 2010 initial public offering. Put simply: $1,000 invested in GM shares around the time of its IPO would be worth less than $1,000 today — almost eight years later. And since June, GM shares have slipped 27.3 percent to … [Read more...] about Howes: Rising interest rates, higher prices slash Detroit auto stocks
Phoebe Wall Howard Detroit Free Press Published 12:20 PM EDT Sep 19, 2018 New tariffs imposed by President Donald Trump on auto parts from China will hit carmaker profits, cut sales and threaten to "start a downward cycle" in the critical industry, analysts said unanimously Tuesday. In addition, if you're in the market for a new car, you probably should get to a dealership soon, because prices are going up. Trump's latest round of tariffs on Chinese imports will add costs to more than 100 car parts — a 10-percent levy on everything from tires and brake pads to engines and batteries — that go into cars made and sold in the U.S. "It's going to be felt by Americans and it's going to be a big deal," said Peter Nagle, senior analyst at IHS Markit. "Tariffs are taxes on consumption. Eventually, costs will be passed down to the consumer. This will drive vehicle costs higher. It also includes a lot of body shop equipment." Related: Trump has … [Read more...] about Trump tariff list delivers ‘gut punch’ to auto industry