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Old 10-27-2008, 09:42 AM   #1
ssdd
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Default usa today

http://www.usatoday.com/money/autos/...is-loans_N.htm
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Old 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.
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Old 10-28-2008, 11:08 AM   #3
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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.
I agree. surly we will see some business after this election...
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Old 10-28-2008, 06:16 PM   #4
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I agree. surly we will see some business after this election...
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.
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Old 10-29-2008, 05:25 AM   #5
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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.
I sure wish that libor would come down. I think the flooplan is what is going to do a bunch of dealers in...
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Old 10-29-2008, 09:15 AM   #6
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I sure wish that libor would come down. I think the flooplan is what is going to do a bunch of dealers in...
That's a great point - declining sales and higher flooring rates is a deadly combination.

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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Old 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
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Old 10-29-2008, 10:16 AM   #8
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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
Thanks for the link.

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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Old 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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Old 11-03-2008, 02:47 PM   #10
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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....
I just noticed this post - I must have missed it last week.

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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Old 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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Old 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.
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Old 11-04-2008, 09:03 AM   #13
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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.
That's definitely good news - especially since the lower LIBOR rate is a good indication that the credit markets are starting to "thaw."

Hopefully the worst part of the credit crisis is past and things can slowly start getting better.
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Old 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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Old 11-04-2008, 10:29 AM   #15
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Anyone know the formula to convert the LIBOR to an actual interest rate?
If you're referring to a flooring rate with Chrysler Financial, they have a base rate and then they add the LIBOR rate to the base rate.

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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