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Automotive Discussions Car People talking about the Car Business – This is the place where it happens |
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10-27-2008, 09:42 AM | #1 |
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usa today
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10-28-2008, 10:36 AM | #2 |
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Thanks for the link.
While I can't argue with the facts presented in the news report I hate to see another headline that will keep people out of the showroom. When the first quote you read is: "Things are going disastrously..." you know it's not going to be a positive story about the car business. I do agree that business will probably be very good for those dealers that survive until 2010 - but that seems a long way away at this point. |
10-28-2008, 11:08 AM | #3 | |
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10-28-2008, 06:16 PM | #4 |
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I hope so too, but I'm not 100% sold that will happen.
I read that Consumer Confidence levels are at a 41 year low - even the people that have money aren't spending it because they're worried about the future. On the plus side, the Stock Market was up 10% today and the Federal Reserve should be cutting rates by 50 basis points tomorrow. |
10-29-2008, 05:25 AM | #5 | |
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10-29-2008, 09:15 AM | #6 | |
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One analyst on CNBC was commenting yesterday that the Fed's 50 basis point change will not have a huge impact on the consumer because so many loans are based off of LIBOR. It seems that the same comment would be true for dealers. I wonder if there are any flooring sources that still use the Prime Rate as their base? |
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10-29-2008, 09:39 AM | #7 |
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Piece that was on Nighline last night...harsh reality, but when it all shakes out, biz will be stronger better and more reselient.
http://abcnews.go.com/nightline |
10-29-2008, 10:16 AM | #8 | |
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That is a harsh reality - especially when you think that we may only be about 25% of the way through the total number of dealership closures. As bad as it seems now it's possible that there will be three more stores closing for every store that is empty now. I agree that the business will be stronger once we reach the other side, but that seems like a long way off right now. |
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10-29-2008, 11:48 AM | #9 |
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a dodge dealer 35 miles away closed it's doors today. that sent shock waves through my store, but at least that will make Fridays layoffs a little easier for them to take....
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11-03-2008, 02:47 PM | #10 | |
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Sorry to hear that you had to layoff some employees - that's never an easy thing to do especially when the job market is soft. As tough as it is, when you see your competitive dealerships closing down you realize that you have to make those hard decisions. |
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11-04-2008, 05:26 AM | #11 |
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yea, Friday pretty much sucked, but you have try to make it through to better times.
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11-04-2008, 05:29 AM | #12 |
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at least this will help...
Subject: LIBOR Rate Announcement Due to a recent change in the money market, the following One Month LIBOR rate adjustment from 4.36 to 2.58 will be effective November1, 2008. Should you have any questions, please consult with your Business Center Contact. We wish to thank you for your support of Chrysler Financial. |
11-04-2008, 09:03 AM | #13 | |
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Hopefully the worst part of the credit crisis is past and things can slowly start getting better. |
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11-04-2008, 09:10 AM | #14 |
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Anyone know the formula to convert the LIBOR to an actual interest rate?
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11-04-2008, 10:29 AM | #15 | |
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It's unclear how much the base rate varies between dealers but I know that one Chrysler Dealer on the East Coast has a base rate of 4.75%. For this dealer, his flooring rate would be the base rate + LIBOR: 4.75 + 2.58 = 7.33% Was your question concerning flooring or retail rates? |
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