Get Your Money

We're starting off with a little history. During the presidential campaign in 1932, Frankin D. Roosevelt said very little about what he would do if elected. When it came to making the first major speech on his inauguration, the Great Depression was just starting to rub along the bottom of the economy. That's when FDR said, ". . .the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." One of the main causes of a recession is a loss of consumer confidence. That's when ordinary folk like you and I stop spending our money. Just think about it for a moment. If we all stop buying "stuff", there are no jobs for those who manufacture, distribute and sell it. Take away demand and you don't need supply.

So, today, the Treasury Department announced moves to make borrowing easier to buy new and used vehicles. There's just one problem. No matter how much money the Fed and Treasury pump into the system, no matter how generous the interest terms offered on the loans, if you buyers don't have the confidence to go back into the showrooms, the economy seizes up. All those fancy economists up in Washington can talk about "freeing up the credit market" and "easing liquidity", but it all comes to nothing if you don't trust. . . "Trust"? Well, if you were thinking about a new car, who wants to trust the Big Three not go bust. That would make the warranty look a bit sick and what happens to spare parts? Guess that's why new car sales are now running below one million a month. The market has not been this slow since 1992.

How many people do you know with the cash to buy a car? Almost everyone borrows from the banks, licensed lending companies, credit unions and the car makers who offer their own finance. But here comes the big irony. Because of the Fed, the credit crunch is less tight today than it was yesterday. More people could get finance to buy a vehicle. But there's still that fear. What will happen if I lose my job? So even though it's all better news for borrowers, there's not going to be a big rush into the showrooms until your confidence as consumers picks up again.

Except there's never been a better time to buy a car. Prices have been dropping fast, particularly in the used car market. If you used this site and picked up a car loan, walking round the dealerships with the cash that represents gets you a really big discount. Note you need a free-standing auto loan to draw down when you've found a car. Or do it the other way round. Find a car, negotiate a price and then look for a loan at the best interest rate. Believe me, the dealer will hold the car for you.