Detroit's Big Three automakers pleaded with a reluctant Congress Tuesday for a $25 billion lifeline to save the once-proud titans of U.S. industry, pointedly warning of a national economic catastrophe should they collapse. Millions of layoffs would follow their demise, they said, as damaging effects rippled across an already-faltering economy.
The economic catastrophe was charging 500 to 700 a month for a decent car.
I own a car with a low payment but a lot of miles on it and periodically shopped around to trade up. I have a 2000 Maxima, looked at 2005-2006's. My car is in good shape, I got a decent deal on it. Occasionally they'd be a 2000 sitting in the yard with a 10-11 thousand pricetag on it. I owed 6 grand. Whatever deals they'd put together, on one hand they'd tell me Maxima's hold their value and warrant the high price on the 2005-6 and with the other hand, they'd tell me I was upside down on my loan all with the same car selling on their lot for 11 grand.
I figured out that they were trying to make 10 grand plus on a used car purchase. The prices were usually in the 400 to 450 per month range for the 05's on a seven year loan - sometimes were as high as 550 for the 06's. I know several people who are paying 700 a month for their new car.
The good old days when greed was in it's glory.
As soon as the suckers dried up, they expect us to bail them out with housing money?
What good will that do?
Lot's of banks that need the money to free up credit will be out 25 billion.
25 billion that is earmarked for the foreclosure crisis will put thousands of people out into the streets.
1. Lower the price of the cars to make a decent profit without being greedy.
2. Let the banks get the money so credit will loosen up.
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