The New York Times has a great story on their Web site today discussing how the credit crunch is affecting the auto industry. It talks about how banks and lenders aren’t loaning as much money anymore and as a result, less people are getting financing for a car.
Home owners who would usually take out a home equity line of credit to get a new car aren’t able to do so recently. Plummeting prices of homes and their values are drying up that stream of money.
The article also talks about the increasing repossession rate of vehicles as drivers fall behind on their car payments. As more and more car buyers get turned down for auto financing, besides keeping their current cars longer, what other options are available to those potential car buyers?