We work with 30 large auto dealer groups across the country. All
credit applications are now being denied. One dealer, a huge Dodge
dealer in Georgia was just told by 2 major lenders that the
"window" is now closed. Another large dealer group in the southwest
has been told not to forward any more applications as of Noon today
by their largest lenders.
My bank, a large midwest independent instructed all officers to
stop taking any type of applications for loans in the auto/
mortgage fields.
I know the auto and mortgage business. Was in them for 25 and 11 years
respectively. This is a major meltdown that I have never seen before.
Credit is being cut off to 50% of the economy (autos and homes) so it
looks like the credit crunch is hitting.
I would look for more credit outlets to get even tighter as the
week and month goes on. Remember this quarter ends and many companies
were expecting a horrible fourth quarter.
We have some serious problems happening...someone needs to step
forward very soon.