Showing posts with label repossessed carssed cars. Show all posts
Showing posts with label repossessed carssed cars. Show all posts

Thursday, March 7, 2013

Indirect Looks to Lead Again in Lending Dance - http://www.cutimes.com/2013/02/27/indirect-looks-to-lead-again-in-lending-dance?ref=hp

From the February 27, 2013 issue of Credit Union Times Magazine •

Indirect Looks to Lead Again in Lending Dance

Thick in the heyday of originating indirect loans, credit unions basked as the slices of their auto lending portfolios swelled to historic proportions.
The momentum should have led to programs that helped aid bottom lines across the country. Instead, that rapid growth caused some credit unions’ indirect loans to destruct, brought on by a high concentration, massive defaults, shady incentive programs and poor dealer relationships. The latter likely was the worst culprit, some have argued.
“One thing that all the credit unions that got in trouble have to remember is that it they had no one to blame but themselves,” said Eddie Nevarez, vice president of business development for the National Auto Loan Network, in Newport Beach, Calif., which counts more than a dozen credit unions among its clients.
“It is no secret that auto loans and memberships are the bread and butter for all credit unions, but back then, many were risking their members on plain bad lending practices to satisfy their indirect lending partners,” Nevarez said.
Nearly all–Nevarez estimated 99.99%–of credit unions involved in indirect lending got caught up in the idea that auto loans were the end all and be all of success. As a result, they let the dealers dictate to them their business.
“It is not so shocking to hear what they have to say regarding a few credit unions in Southern California, most of which stopped their indirect programs and recently started back up or are looking to get back in to indirect lending,” Nevarez said. “The one thing that these individuals all say is that there were credit unions that would buy anything and if you could not get approved anywhere else we knew that these credit unions would approve or buy it.”
From firsthand experience with one of these California credit unions, Nevarez said that most of the due diligence needs to be done internally. That can mean ensuring that a credit union is staffed properly to handle an indirect program and keeping the underwriting guidelines consistent with the credit union’s direct program, he advised. Internal controls are a must including audit and compliance procedures, Nevarez noted.
On the other end, providing the indirect partner with clear expectations can prevent surprises. Underwriting guidelines, funding and service levels and turnaround times need to be spelled out.
“Set the criteria of the program and only sign with partners that agree with your terms,” Nevarez said. “Always remember that the members come first.”
After heavy losses, the $582 million Seattle Metropolitan Credit Union shut down its indirect lending program in 2009, said Caleb Cook, vice president of lending.
“The spreads are very thin for all loans in the current environment, and margins must be managed closely. Indirect loans should be looked at as an investment as many of the new members you sign up will be single service,” Cook said. He added that credit unions may want to shoot for a 1% margin considering they can get a 1% return on a risk-free investment.
Indirect lending comes in all shapes and sizes, from small to large programs to in-house operations or through partnerships with a CUSO or for-profit organizations. Because a program can include autos, boats, recreational vehicles or even merchant lending, Cook said a sturdy foundation should be the common goal.
“The level of due diligence required before implementing an indirect lending program depends on the shape and scope of the operation,” Cook said. “Implement prudent risk and portfolio limits and closely monitor performance as your program matures, which generally takes two or more years. Document all of your due diligence as the examiners will ask to review during their next visit.”
Critical strategies to ensure credit union long-term success in indirect lending should begin with having the goal of starting slow and growing steady, said Michael Cochrum, product director of analytic products for CU Direct Corp., a lending service provider in Ontario, Calif., with 1,050 credit union clients.
“When new loan originations are down, it’s tempting to hook up the lending hose to the nearest origination hydrant and turn it on full blast,” Cochrum said. “But the key to long-term success in indirect lending is to set reasonable goals for growth and not be tempted to take on more than your credit union can handle.”
Fast growth can hide performance issues early on, so it’s important to be able to segment risk categories by origination period in order to isolate emerging negative indicators, he pointed out.
Another area where credit unions may get into trouble is weighing relationships over rates, Cochrum said. Because they are not positioned as top-tier lenders at the dealership, the temptation is to compete for business by offering the lowest rate, he noted.
“This can obviously cause profitability issues down the road. Relationship trumps rate in the dealer [finance and insurance] office, especially in the low-rate environment we are in today. An F&I director can sell a 50 basis points difference in rate,” Cochrum said. “It’s what they do. More important than rate is consistent underwriting, timely funding and the ability to share in the profits of closing the loan.”
If credit unions maintain a consistent underwriting standard, eliminate needless delays in funding and provide the opportunity for the dealer to profit from the arrangement, they can sustain long- term relationships with dealers, Cochrum said.
“Remember, the dealer has no reason to protect the lender if they are only doing 1% to 2% of their loans with your credit union,” Cochrum warned.
Meanwhile, as the concentration of financial penetration builds, another lure might be trying to do business with every dealer in town. Cochrum said most credit unions can get the volume required for a solid performing portfolio from 10 to 15 dealer relationships. However, it’s better to get five to 10 loans from 10 to 15 dealers than one loan from 100 dealers, he offered.
“When a credit union has gained penetration in a dealership, they are vested in the relationship and the credit union becomes integral to their success. A dealer is much more reluctant to fracture a relationship in this case,” Cochrum explained. “If your credit union is only doing one or two loans a month with a dealer, then that only represents incremental business. If the relationship is fractured, it is easily replaced by another financial institution.”
Above all else, credit unions have to stay on top of consistently monitoring risk factors. The set it and forget it approach can lead to problems down the road, Cochrum said. For instance, sharp increases in volume can indicate a soft spot in a credit union’s underwriting that may be exploited, he suggested.
Monitoring the mix of paper a credit union is getting and how long members in each credit tier are sticking with can help indicate areas where long-term profitability may also be challenged, Cochrum advised. While there is encouragement to monitor dealer losses and delinquencies, it might be even more telling to monitor a finance director’s performance as they move from dealer to dealer, he noted.
“Credit unions must monitor volume fluctuations, credit quality distribution, lifecycle yields, early payoffs, first payment defaults, finance director portfolio performance, and underwriter and dealer loan pools,” Cochrum said. “These are the areas that can indicate trouble.”
NCUA examiners are reviewing call reports for increasing amounts of repossessed autos or increasing indirect lending delinquency and loan losses, the agency has reminded in several letters to credit unions including an August 2010 on due diligence.
In addition to those danger signs, examiners are also looking for other red flags that may require a credit union to slow down indirect lending. Among them is a high concentration of indirect loans to total loans or net worth without adequate controls in place and incentive programs tying loan officer bonuses to indirect loan volume.
The NCUA said other areas of scrutiny including inadequate analysis of overall indirect loan portfolio performance and high instances of first payment default, payment deferment and account re-aging.
Another key area involves the relationship between the credit union and dealers. The NCUA said poor dealer management can run the gamut from reliance on the dealer to obtain credit reports to accepting loan payments from dealers and dealer-created down payments through dealer incentives to inflated or fraudulent trade-in or purchase price or continuous overdrafts in dealer reserve accounts.
In that August 2010 NCUA letter, NCUA Chairman Debbie Matz issued several warnings for indirect lending programs including rapid growth that can lead to a material shift in a credit union’s balance sheet composition.
“NCUA has seen seemingly healthy credit unions fail in a matter of months due to indirect lending programs that spun out of control. While there are benefits to a well-run indirect lending program, an improperly managed or loosely controlled program can quickly lead to unintended risk exposure. This can increase credit risk, liquidity risk, transaction risk, compliance risk, and reputation risk,” Matz wrote.
Those risks are likely tied to the fierce competition for shelf space with the dealerships. Many large lenders, including captives have gotten very aggressive with rates, particularly in the prime lending arena, said John Flynn, president/CEO of Open Lending LLC/Lenders Protection, an auto loan underwriter in Austin, Texas. Some lenders are also paying the dealers some aggressive rates and reserves to get the deals.
“We doubt they are making any net yield at all on the super-prime loans. Our view is that for the most part, this loan is typically the only relationship the member has with the credit union so they have to make money on this loan,” Flynn said. “They can’t depend on profits from other products to subsidize the yield.”
One of the key reasons that the indirect funding ratio is much lower that direct is simply that the F&I guy has many choices in their lender network, Flynn said.
“Our belief is that a strong relationship is one of, if not the most important ingredients to having a successful indirect program. The dealers are looking for a lender that is consistent rather than fickle. They also prefer full spectrum lenders,” Flynn said.
According to CUNA, in 2012, approximately 84% were involved in some sort of indirect lending. While it has revenue benefits and can generate membership growth, ultimately the credit union has to stay in and maintain the driver’s seat.
“The credit union must be in control of the program at all times and should not be afraid to terminate the program at any time,” Nevarez said. “Do not hand over the keys to the credit union to your partner, they will do what is in their best interest.” 

Monday, December 31, 2012

Top 5 Reasons to Buy an REO Property

RepoFinder.com has listed the top 5 reasons to buy a bank or credit union REO. Home buyers across the Nation may not even know about these properties or where to buy them. This article will help familiarize buyers with the benefits of buying direct from a credit Union or local bank.



5- The price is right:



The first thing people associate with buying an REO is getting a low price. When REO's are purchased directly from the bank or credit union there is generally no commission, fee, hidden cost, auction registration charge, etc. These properties are sold only to cover a loss. In almost no circumstance does the bank or credit Union net a profit from the sale. These orphaned properties are typically sold at a loss and if there is residual equity from the sale it is returned to the prior owner. The lenders DO NOT want these properties and they are priced accordingly to sell quick.



4- Bank / Credit Union financing is the best:



A lot of Agent will tell you the most lenient financing and the best interest rates will always be the local credit unions and small banks. After all, they were the ones that financed these properties originally. Small banks and credit unions can negotiate both the price and the interest rate. With low prices and low rates you always get the best deal.



3- Banks / Credit Unions are a trustworthy seller:



Local credit unions and banks are built on the foundation of trust. Their financial reputation is at stake every time they work with you. They absolutely cannot afford to breech that trust over a the sale of an REO. Repo homes are typically sold “as-is” and the sales are final. You won’t be pressured into buying something you don’t want. Make sure you do your due diligence and are certain you want the property before you commit to buying.



2- Plenty of quality inventory:



REO's are not all the same. We’ve heard horror stories of severely damaged homes forclosed from drug dealers and resold at auction. This is generally not the case with buying local credit union REO's. The vast majority of credit union owned properties are voluntarily surrendered in great condition.



1- Search Credit Union inventory from home at no cost:



In the old days of the internet, and even today several websites claim to have exclusive access to REO lists. In reality they are only selling you public records and local auction house contact info. They make claims exagerated claims to entice you into paying memberships, but they make absolutely no guarantees that you’ll get any results.

For more information visit: http://RepoFinder.com

Friday, December 21, 2012

Maine Repo Boats, ATV's, RV's, REO Property, Cars, Trucks, Airplanes, and More.


Tuesday, September 14, 2010

http://www.wpri.com/dpp/news/12_for_action/call12-car-loan-modifications-buyer-beware

Buyer beware for car loan modifications

Companies prey on fear of repossession

PROVIDENCE, R.I. (WPRI) - Could you deal without your car? If you're having trouble making payments on your car loan, beware if a company comes calling, offering to modify your car loan -- many of these companies are simply not keeping their promises, and stranding drivers with worse debt.
Paula Flemming of the Better Business Bureau tipped off Call 12 For Action to this unscrupulous practice. Auto loan modification companies are following in the footsteps of mortgage modification companies -- targeting struggling families just trying to keep their heads above water.
Flemming said there's been an increase in cars being repossessed due to high unemployment in Rhode Island and around the country. Last year, 1.9 million cars were repoed.
Crooked companies are preying on the fear of repo. A family or individual might get a phone call from a company offering to lower their payments, and "they quickly act," said Flemming.
But if you act before researching that loan modification company, you could find yourself in even bigger trouble -- like a driver given the wrong directions. Some of these companies, said Flemming, don't just fall short on their promises -- they might not even modify the loan at all!
If you're having a hard time making payments, first ask your lender to adjust your payment plan. If you do want to go to a new company, at least do your research, and check the company's reliability report with the BBB.
And always beware of advance fees; it's a red flag, even if the company says they'll give you a money back guarantee.
"You could have initially dealt with your lender and not pay any fees," advises Flemming. "[The crooked loan companies] are digging you further into a hole."
The final common sense check: get everything in writing. Ask the company's rep to send you documentation, a copy of the loan agreement or contract. Make sure it discloses the services they will provide and their terms, including any refund policies.

Monday, September 13, 2010

http://www.siskiyoudaily.com/news/x907387807/Many-questions-arise-over-YAC-incident

Many questions arise over YAC incident.Zoom Photos. Jamie Gentner.The Yreka Auto Center Service and Wash center has been closed since cars were taken from the car lot on Aug. 26. Owner Steve Long said the decision to keep the businesses closed came when he was told any cars he tried to sell on the lot would be taken, and he didn’t want to take any chances of anything happening at the other two YAC branches.


Yreka ApartmentsYreka AttorneysYreka Auto DealersYreka Auto PartsYreka Auto RepairYreka Beauty SalonsYreka Car RentalYreka DentistsYreka DoctorsYreka FlowersYreka HotelsYreka InsuranceYreka LoansYreka MortgagesYreka MoversYreka PizzaYreka RealtorsYreka RestaurantsYreka StorageYreka Tax PreparationYreka Travel.By Jamie Gentner

Siskiyou Daily News

Posted Sep 13, 2010 @ 08:39 AM

Yreka, Calif. — It’s been almost three weeks since cars disappeared from the Yreka Auto Center lot on Main Street in Yreka. Nineteen days after the event, there are still questions about what happened and different sides of the story to be heard.

Yreka Auto Center

When YAC owner Steve Long showed up for work Thursday, Aug. 26, almost every car that had been on the lot was gone and the door to the office was ajar, he said.

Long called the Yreka Police Department to report the cars stolen. He received a call back informing him that the cars had been repossessed, Long said.

He had received an e-mail the Monday before, but he didn’t get around to reading it until days later. The e-mail was from Express Auto Funding, the bank from which YAC had borrowed money for several of the cars on the lot. The e-mail demanded payment of $346,000 on eight cars by Wednesday or Long would be put in default.

But Long wondered several things: how had the company gotten hold of the keys for the cars? And why had they taken almost every car on the lot – including some belonging to local residents that were on consignment or in for service?

Long said he was told that the local man who repossessed the cars for Express Auto Funding, Nolan Henry, had told police that Long had given him the keys for the cars the night before. But when he left at around 5:30 p.m. Wednesday, Long said, the keys were locked in the closet as usual. He also said a cleaning lady who left around 7 p.m. reported that the keys were in the closet – which is where all her supplies are kept – when she left.

“If I had handed him the keys Wednesday night, why did he come at 3 in the morning for the cars?” Long said. “And why would I have given him the keys to every car?”

The police had told Long that Henry had called around 3 a.m. Thursday morning to tell them he took the cars and would look into which cars he needed to return, Long said.

A police officer had been there that morning, Long said, and Henry wasn’t stopped.

In the days that followed, Long said he retained an attorney and had several meetings with YPD Chief Brian Bowles and Lt. Dave Gamache.

But the police wouldn’t take any stolen car reports, Long said, because they determined the case was civil and not criminal. Instead, Long and the individuals seeking their cars should get ahold of Henry directly, Long said he was told.

He discovered that the cars had been taken to a ranch in Montague before being shipped to Fresno and Bakersfield, Calif.

“There are people who have their titles but don’t have their cars anymore,” Long said. “I’m not concerned about the YAC cars; I’m concerned about the 18 cars that belong to our customers that were taken.”

While working to help those individuals figure out how to get their cars back, Long said he and his staff were also trying to regroup and figure out how to stay open.

“We were told if we put cars on the lot again, they would be taken,” Long said. “So we weren’t going to take any chances until we get this settled.”

So the lot and the service center and car wash across the street remained closed – though Long has remained at the lot to field questions.

Long said he knows of a few people who have received their car. But he was told the rest of the cars would be back Wednesday, and they weren’t.

“The District Attorney’s Office says the case is civil so they can’t issue warrants, and the police say it’s civil so they can’t arrest anyone,” Long said. “They say he isn’t ‘permanently depriving’ people of their cars.”

But Long said he questions whether the parties involved have something to do with why the police won’t take action.

“I feel like I’m in a different country. ... How this went down, how the police and district attorney won’t get involved – I don’t know how all this works, but it doesn’t smell right. It doesn’t feel right,” Long said. “The character of a vehicle doesn’t change whether it’s on my lot or at someone’s house. You can’t take someone’s car.”

Long said he has never seen a repossession handled like this in his 25 years in the car business. Had it been handled differently and had the police gotten more involved from the beginning, Long continued, three businesses would still be open.

“I don’t know how more to help my customers,” Long said. “Now I’ve got to figure out what, as a business, to do and where to go.”

Finance Company

Henry was contacted several times for comment, but Express Auto Funding would only issue a prepared statement.

In the statement received Friday, the company states that it made loans to Yreka Auto Center so it could buy cars to sell on its lot.

“Several months ago, Yreka Auto stopped making payments on these loans. Now it has been discovered that Yreka Auto is guilty of several serious violations of contract,” the statement reads. “In response, Express Auto Funding took lawful steps to obtain possession of certain Yreka Auto vehicles. ... Express Auto Funding regrets the harm done by Yreka Auto to Yreka customers.”

When contacted by the Daily News for further comment regarding repossession procedures, why a list was not used so only YAC cars were taken and why several individuals had not received their cars back 16 days later, Express Auto Director David Lachtman said the company had no further comment.

The police

Bowles said the YPD got more involved in this case than they would normally get involved in a civil case. All their information on the case has now been turned over to the district attorney.

He called the situation a “mess” and said his department has spent an “extensive amount of time” trying to solve the situation at a community level.

In contrast to Long’s statement, Bowles said anyone who has requested to make a report has been allowed to do so.

But it doesn’t appear Henry was stealing any vehicles.

“If he was stealing the vehicles, he wouldn’t call the police department. You have to have intent to permanently deprive,” Bowles said. “This was a creditor collecting assets from a business. ... He said he will release the vehicles he’s not supposed to have.”

With that in mind, Bowles said, he doesn’t want to make any false arrests.

“We don’t want to intrude on someone’s rights, but yet we want to protect potential victims,” Bowles said. “So we’re still continuing to help people get in contact with him.”

He has been told that all but a few cars have been returned to their owners, Bowles said. But there has been some questions about whether cars that were on the lot on consignment had been signed over to YAC, so there was an extensive effort to determine which cars belonged to whom.

A look at the consignment form sellers sign revealed there’s no act of signing over a title or rights to YAC.

The police have to look at the physical evidence available in a case, Bowles said.

A police officer was called out that morning, requested by Henry, to check the premises before he left, Bowles said. This is a common practice to ensure owners don’t try to pin damage on a repossessor, he said. And there was no physical evidence of forced entry at that time.

In addition, Bowles said, a look at the contract involved reveals that Express Auto has the authority to take assets if balances are unpaid.

“Can keys be considered an asset?” Bowles said.

He dismissed the idea that the police aren’t getting involved because of the parties involved.

“I was told when I took this job that I could arrest anyone who has committed a crime – it doesn’t matter if that means arresting the mayor, city council members, law officers,” he said. “Otherwise, I wouldn’t have taken this oath. My department knows that if you do the crime you do the time.”

But while there appears to be some bad business practices and some tricky situations in the mix, for now, there has been no determination that a crime has been committed, he said.

Bowles said that he, too, has not seen a case like this in 20 years.

He encouraged any individuals who have not received their car and who believe it to be stolen to file a report with the police department, and he said that it’s now just a matter of waiting to see what happens.

District attorney

District Attorney Kirk Andrus said his office has taken on the role of mediator in this case.

“There may be a criminal case some day, but knowing whose vehicles these are is a prerequisite to a criminal investigation,” Andrus said.

He said several people have come forward with proof of ownership for their vehicle and there has been an effort to return those vehicles.

Any vehicles that have not already been returned, Andrus said, are expected to be returned this week.

And to this point, the case is civil, Andrus said, because of intent.

“When you talk about criminal intent, if a person did something because they felt legally entitled to, it’s not a crime,” he said. “They might be wrong, and in that case it would be up to a civil court to determine who’s right and wrong. But it’s not a criminal matter when someone truly believes they are right. ... It does have to be reasonable, though.”

Andrus said he has no indication that YPD is not taking reports or is not getting involved when they should be.

“I have not noticed any amount of prejudging who is right and who is wrong or the police giving the benefit of the doubt to anybody,” he said. “People can feel confident that the Yreka Police Department has handled this the best they can.”

His department has not ruled out the possibility of a crime having been committed, Andrus said.

“What we’re doing right now is trying to solve problems and make people’s lives easier,” he said. “This dispute has interrupted people’s personal and business lives.”

Customer

One resident whose life has been affected is Mike Harris, who said his daughter’s car was on the lot for repairs when the cars were taken.

As of Thursday afternoon, he had not received the car and he had not been able to file a stolen vehicle report, he told the Daily News.

His finance company had called and told him he would have the car last week, Harris said. When he didn’t get it back, he said he talked to Henry, whom he said told him he didn’t know where his car is.

Andrus said his records indicate there are issues with that car, but there was no record of contact from Harris.

Andrus added that the promised return of cars is an important event in this case. Once that is done, or is not done, more will be known about how to proceed.



Copyright 2010 Siskiyou Daily News. Some rights reserved

Tuesday, August 17, 2010

http://www.sltrib.com/sltrib/money/50125049-79/loans-auto-credit-loan.html.csp

Consumers loans harder to come by, except those for autos


By LESLEY MITCHELL



The Salt Lake Tribune



Updated 1 hour ago Updated Aug 17, 2010 04:38PM

It’s more difficult — impossible for some — to get a home loan or refinance these days. Ditto for credit cards. And small business loans? Don’t even consider applying for one unless you have a financial house in order.



But auto loans? Not so much. Bad credit, bad credit — it seems like most people these days are still able to finance the purchase of an automobile.



“It’s amazing just how the auto loan industry has relaxed their lending standards, even in just the last 90 days,” said Al Bingham, the Utah author of The Road to 850,” a book about the nation’s credit scoring system.



The goal, of course, is to move cars off lots at a time when many consumers can’t — or don’t want to — make a major purchase.



That’s why General Motors recently agreed to purchase AmeriCredit, a provider of subprime loans made to borrowers with less than perfect credit. Analysts say the acquisition could boost the automaker’s sales by 10 percent to 20 percent a year by giving the carmaker broader control over auto-loan approvals, especially to those with less than good credit.



So why has subprime car lending continued long after subprime home loans have virtually disappeared amid the housing crisis?



For starters, auto loans to those with less than perfect credit don’t carry the risk to lenders than high-risk mortgages do. Customers pay exorbitant interest rates — in some cases pushing 30 percent — and cars can be repossessed fairly quickly and easily if borrowers stop paying. Seizing a home is a much more time-consuming and expensive process.



And many borrowers remain highly committed to their car loans and will stop paying on their credit cards and other debts — even on their mortgages — before they stop paying the loan that gives them a way to get to work or anywhere else the need to go.



Story continues below Sheriff: SC mom killed kids, dumped car in river

Updated Aug 17, 2010 03:50:34PM 0 Comments

Murder charges sought in boys’ deaths in SC river

Updated Aug 17, 2010 06:19:35AM 0 Comments

But there are signs of trouble in the auto lending industry. Auto loan defaults rose sharply in July by 16 percent from June, according to a report released last week by Standard & Poor’s and credit-reporting company Experian.



While mortgage loan and credit card default rates fell slightly, rates for second mortgages and auto loans rose. The default rate on auto loans in particular increased to 1.9 percent in July from 1.6 percent in June, reversing six months of declines.



“It may be an early warning sign, “ said David M. Blitzer, a Managing Director at Standard & Poor’s.



The problem for many car dealers right now, Bingham said, is that the people who can truly afford to buy a car right now don’t want to buy. Many people are holding on to cars longer and delaying vehicle purchases.



But there are a number of borrowers who need a car or want to buy one even if they aren’t in good shape financially.



Since the economy has tanked, the federal government has been pushing incentives for consumers to buy homes, cars and other items — and encouraging financial services companies to lend — in an effort to stimulate the economy.



But credit experts like Bingham aren’t sure that subprime auto loan ultimately are good for consumers — or the economy as a whole. “Is a 20 percent interest rate going to help someone, or make their financial situation worse?” he asks. Plus, a rash of auto-loan defaults down the line could hinder the nation’s economic recovery.



But Craig Bickmore of the New Car Dealers of Utah said it’s important to note that the car-loan industry didn’t bring on the financial crisis and that default rates on vehicle loans overall are much lower than default rates on other types of loans.

http://www.glendalenewspress.com/news/tn-gnp-autos-20100818,0,2410783.story

Car dealers hanging on to improved sales figures



If anyone is pleased with the lukewarm national retail sales figures for July, it is probably auto dealers.




Car sales represent the brightest spot in the Department of Commerce figures released Aug. 13, which overall showed a 0.4% gain in retail and food spending over the previous month. But auto sales were up nearly 9% from July 2009 and 1.7% from June.



"It is better news," said Jeanne Brewer, owner of Acura of Glendale. "We're seeing a little increase over what we were doing last year. The good news is we're also starting to see a few more people out into the marketplace, making decisions to repair their vehicles."



At Star Auto Group on Brand Boulevard, sales of Mazdas were up 67% compared to the same period last year. Sales at the group's Ford unit were up at least 21%, said owner Steve Bussjaeger.



"We are selling more cars and trucks, no question," he said.



Buyers remain mileage-conscious, with makes such as the Ford Fusion and Focus leading the charge, he added.



But Bussjaeger saw reasons for caution, as well.



The relatively large increases in sales mask what was "a very deep low" last year.



"The auto sector probably got hit harder and were down further than everybody, so it doesn't surprise me that we are up," he said.



The Brand Boulevard of Cars is an especially important source of sales tax revenue for the city, so any recovery there would impact city coffers.



The uptick in sales was stronger earlier in 2010, with sales flattening out in summer. The Department of Commerce statistics show car sales up overall in July compared to June, but that was after a slowdown compared to May.



Comparisons to last year will grow tougher next month, when the federal cash-for-clunkers program was at full throttle.



Brewer and Bussjaeger said the business continues to experience a hangover from the credit crunch, with some car buyers returning autos to the lots to be repossessed by lenders.



"That never used to happen at all until about a year-and-a-half ago," Brewer said. "



Still, bright spots in the entertainment and film production industries in terms of job recovery has had a noticeable effect on business, she added.



"Fifty percent of our business comes from people in the entertainment industry, which creates a lot of jobs in our area," Brewer said. "A few more projects getting funded, and we're starting to see that population come back into the dealership, which has really been terrific."

Monday, August 9, 2010

http://newsblaze.com/story/20100807152043j112.nb/topstory.html

A Personal Tale of Murder, Depression and Deprivation in Flint, MI



diggBy John Danz Jr







Somehow, I'm still surprised to see Flint, MI in the headlines.



I moved away from my hometown of Flint just two months ago. It was the best move I ever made in my life. My mom decided to move back to Flint from Texas after three years because she missed her family and hated the fertile, full of opportunity economy of Texas. Trouble is, Flint is an abysmal cesspool financially and socially. She didn't think, and now she wonders how she'll get by without a job from week to week. I can't say I didn't warn her.



Let me put the job market of Flint in perspective for you in a personal manner: In eight months in Flint, my mom had one temporary job for three weeks. I never came close to finding a job. However, within ONE WEEK in my new hometown, I had two job interviews and a job. Call it chance, but I think that speaks volumes for not only Flint's depraved atmosphere, but my mom's foolishness.



Enough insipid tales about my life.



Thirteen stabbings and five deaths later, Flint has made CNN headlines again for its bleak, murderous stigma. To put this in non-boring mass media news terms, an idiot in Flint is acting like he's in distress, only to shank the Good Samaritans that attempt to help him.







What was once 235 acres of prosperity for Flint is now a barren wasteland.







I must say, this is more entertaining than the usual gang shootings. Hearing gunfire every other night for six years got boring, after all. One time, these Emmy award winners decided to entertain me in the neighbor's yard. Soon after, my dad soaked the house in gasoline, threw a match and swept us to a more docile city.



Yeah, I thought I was done talking about my own life, too.



Thirteen stabbings and five deaths later, Flint once again asserts itself as one of the worst places to live and the loud, proud anus of the state of Michigan. All that seems to be left of Flint are the scars in the Earth where automotive factories used to proudly roll out fresh new cars. My mom, grandfathers, grandmother on one side, aunt, uncle and father all made a living through General Motors and Delphi. My grandfather was once vice president for the Chrysler division of UAW. Today, all they have to show for their work are the ashes of the useless certificates they got for their 10-20 years of service resting comfortably in their respective fireplaces. They're still there, because their repossessed houses haven't been sold yet. That explains all of the boarded-up houses on the block I grew up on.



Nope, not done yet. Don't worry - my mom bought a repossessed house with the meager restitution she was given to quit GM. We found a former Fannie Mae executive living in the basement living off of the crumbs of a more prosperous yesteryear. Bitter crumbs, they are.



Thirteen stabbings and five deaths later, Flint now has the attention it needs from the media. Now, everyone can be reminded of how much of a fecal smear Flint has become. A fecal smear of which is becoming less and less conspicuous on the map by the year - but just as smelly. Good news, because it's the only media attention Flint will get until another second grader takes his mom's gun to school and shoots it up.



I finally understood how bad Flint was when I heard a friend of mine was starting a bullet casing collection - from his front yard. When I returned, I saw roaches and rats vacating the city with their belongings on their backs. Now-homeless retirees of GM return to the remains of the once-bustling GM plant to make-believe the tasks that once gave them and their children a future. If walls could talk, there would be a cacophony of screams permeating the dead air from the likes of crack houses, meth labs, condemned shacks and soon-to-be-demolished buildings.



Perhaps you read about the stabbings in Flint on CNN and it was your first time being exposed to the city of Flint. Hell of a first impression! Perhaps you said to yourself "Well, all of Michigan is screwed beyond belief thanks to the collapse of GM and the rest of the automakers." I defy you to take a twenty-year walk back in time and find a city in this state that has filled the toilet full of feces and traveled down the pipes into the deepest, darkest realm of the sewer faster than Flint. Detroit? Sure, but it's a big city. That's not fun, nor is it entertaining. They still have the Red Wings and Eminem. I doubt you'll see any of the few famous faces to come out of Flint "reppin'" any time soon.



Perhaps, like me, you call or once called Flint home and feel the same way I do, and wonder if things will ever change. I mean, come on, even Hiroshima was able to be rebuilt after they were decimated with an atomic bomb. The radiation killed off thousands over time, but at least they had pretty buildings! Flint needs more than simple restoration and urban development - it needs an extreme makeover that would make Ty Pennington run screaming. It needs a complete overhaul financially with competent leaders and minds who can set up the rebuilding process.



This just in - Flint and Michigan is essentially broke. Well, so much for that idea!



Then again, speaking of money, Flint could use what Kalamazoo got - a bunch of billionaires giving millions of dollars towards guaranteed scholarships to schools thanks to their lazy, unmotivated students adding up to a massive dropout rate. It was dubbed "The Kalamazoo Promise." Would Flint have too much pride to accept such a gift? Who knows.



I finally digress.



Thirteen stabbings and five deaths later, Flint still needs help. And thirteen stabbings and five deaths later, Flint still won't get the help it needs. Which means, that's thirteen stabbings and five deaths I'll just experience somewhere else in this depressing, depraved state.

Tuesday, March 9, 2010

Price shouldn’t drive car buying


Price shouldn’t drive car buying
Car buyers often focus on haggling down a dealer’s offer toward invoice price. That’s OK, but often that’s not where the real money is, says a former car dealer in his new book.

Instead of the purchase price, consumers should focus on other components of the deal, especially loans, trade-ins and their desire to buy more car than they can afford, said Mark Ragsdale, author of “Car Wreck: How You Got Rear-Ended, Run Over & Crushed by the U.S. Auto Industry.”

“You’d be better off paying MSRP and paying attention to the big stuff,” Ragsdale said. “But dealer profitability gets the lion’s share of consumer focus and attention.”

Here, Ragsdale said, are a few things to consider other than price:

That upside-down feeling. Negative equity is when you owe more on your car than it’s worth. This is true of most who drive a financed new car off the lot. The vehicle can lose a quarter of its value as soon as the rear wheels hit the street. But even many people who have owned their cars for years are upside-down. It’s typical to own a car three or four years before your car is worth what you owe on it. This depreciation snowballs as consumers get car fever before they have equity in their vehicle. Dealers and auto lenders can accommodate these people by essentially rolling that negative equity into their next car loan — often keeping the payments reasonable by extending the loan.

Customers trade in their cars every 39 months on average, but finance them for an average of 64 months, Ragsdale said. That leaves many upside-down by an average of $4,700, Edmunds.com said. The lesson? Don’t buy a new vehicle until you pay off your current one.

Trade-in value. Many factors affect trade-in value, including a massive recall such as the one Toyota is experiencing. Among the best resources for finding the value of your car are online car-buying sites, Ragsdale said. Edmunds.com, KBB.com and your insurance agent can provide used-car prices, too, but they might not be as “real-time” as prices on cars for sale at this moment, he said.

Rule of 78s. This method of calculating loans is essentially a prepayment penalty because it front-loads the interest. You will be on the hook for most of the interest, even if you pay the loan off early or trade in the car. The figure 78 comes from the sum of the digits one through 12 — the number of months in a year — and from a time when most loans were for 12 months. You want a simple-interest auto loan.

Simple math. When you see an advertised payment of less than $400, ask yourself how reasonable that is. Simple math tells you that a $25,000 car paid over 48 months costs $521 per month — before interest, taxes, fees and negative equity.

The ideal way for many people to buy a car is to pay cash for a slightly used car and drive it for a decade. If you have caviar taste on a fish sticks budget, buy used or lease a vehicle. Leasing is more expensive than buying and holding, but it doesn’t put you thousands of dollars upside-down.

Wednesday, January 6, 2010

RepoFinder.com / Features Missouri State Bank & Credit Union Repossessions for Sale





RepoFinder.com / Features Iowa State Bank & Credit Union Repossessions for Sale





RepoFinder.com / Features Minnesota State Bank & Credit Union Repossessions for Sale





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