My Credit Score Is Zero...

[dennishoddy]

Few people have money problems. The majority of people have discipline problems.

That is a 110% agreement from me.
You have to live within your means. In my case I lived below my means forever. Bought one car with a loan, and when it was paid off, continued to make that payment that we never missed into an account that made a little money, until needing another vehicle.
Write the check and walk out.
It freeks out the dealerships when you say fawk you on financing one through them which makes them extra money.
Debt free is good, but take advantages of the rewards that credit card companies offer, and enjoy the vacations on beaches where the ladies sunbathe topless.

 

[donner]

others may correct me if i'm wrong, but it can be a good negotiating tactic to explore finance through a dealer provided a few things happen. If they are willing to come down on price because they *might* make more on the finance (and providing there is no early payoff fees), why not let them. Most of the sales people get their bump for the sale and for the finance and you get a better price. Walk out and pay the thing off.

also, using a credit card can offer you buyer protections that cash/debit cards cannot. Some credit companies will extend warranties or help if something breaks, etc. They are tools and can be used appropriately or misused.

 

[TerryMiller]

I'll never buy a chevy because of obama in that bailout.

In my case, neither GM nor Dodge/Chrysler.

 

[-Pjackso]

I'll never buy a chevy because of obama in that bailout.

In my case, neither GM nor Dodge/Chrysler.

I actually see it the other way around. I don't hold anything against the companies.
Sure, bad management - poor business decisions were a factor. LOTS of companies were caught with their pants down.

During the crash of 2008, everyone was going bankrupt. The bailout kept them alive during the really bad time. (I think they've repaid their debt)
I would MUCH RATHER give USA manufacturers a lifeline, to help keep and maintain a manufacturing base in the US - rather then -no- US manufacturer.
They are here today, still manufacturing in the US, and providing jobs.
If they've got a product you're interested in, give them some consideration.


BANKS ...on the other hand, do not provide value-added services.
Them SOBs should never have seen a .gov bailout cent.

 

[SlugSlinger]

others may correct me if i'm wrong, but it can be a good negotiating tactic to explore finance through a dealer provided a few things happen. If they are willing to come down on price because they *might* make more on the finance (and providing there is no early payoff fees), why not let them. Most of the sales people get their bump for the sale and for the finance and you get a better price. Walk out and pay the thing off.

I was going to pay cash for my new truck. But there were additional dealer incentives if I financed through the dealer and the dealer would use those incentives to lower the price. I told them I thought my credit was about 830 and they said they would check. They ran a hard check, which could impact your credit, and came back and told me they thought I was lying about my score.

They said my score was 849, which I didn’t realize it went that high. They found a rate of 1.9% through a local bank with no early payoff penalties (this is important).

I bought the truck financing about a third of the price. And the incentives I got lowered the price of the truck much more than the cost of the interest, especially when you discount the interest over time.

I left with a new truck at a good price on Saturday. Monday on spoke to both of my credit unions because they were running specials for transferring an auto loan. Both said they would beat my current rate by half a point. But TFCU also said they would pay me $100 to transfer the loan to them. I got a lower rate, and $100, that effectively lowers the rate more due to the time value of money.

Btw, TFCU also has the remaining amount of my mortgage. A little over a year ago, they were running a special to retire your mortgage. It was a 5 year mortgage at 1.99%. I have 35 months left now and the last payment I made, only ~$80 went to interest.

So, like Full Auto explained, you can leverage your money to your benefit if you have great credit.

I wouldn't recommend this if you are very conservative or risk adverse, but I am talking about my discretionary funds. The money I borrowed through the loan was invested in some stock paying almost 6% and there could also be a benefit of stock price appreciation. So I am gaining more than I am paying out.

 

[SlugSlinger]

I'll never buy a chevy because of obama in that bailout.

Not to be rude, cause I value your opinion, but you’ll buy a Toyota Tundra and support the Japanese economy over buying a Chevy? I believe that truck is made here, but the profits still go to Japan.

 

[TerryMiller]

(I think they've repaid their debt)

Nope...

...Final Tally According to USA Today in 2014

If I remember right, the bailout idea actually began in Bush 43's last term, but Obama embraced the bailout because it would benefit the unions. In addition to saving some of the jobs, the plan put a number of union officials onto the boards of the two auto companies. And, the bailout hurt those individuals that had been major investors in the companies. There was a phrase for those folks, but I can't remember now what it was.

 

[zghorner]

I actually see it the other way around. I don't hold anything against the companies.
Sure, bad management - poor business decisions were a factor. LOTS of companies were caught with their pants down.

During the crash of 2008, everyone was going bankrupt. The bailout kept them alive during the really bad time. (I think they've repaid their debt)
I would MUCH RATHER give USA manufacturers a lifeline, to help keep and maintain a manufacturing base in the US - rather then -no- US manufacturer.
They are here today, still manufacturing in the US, and providing jobs.
If they've got a product you're interested in, give them some consideration.


BANKS ...on the other hand, do not provide value-added services.
Them SOBs should never have seen a .gov bailout cent.

I couldn't disagree more. They should have been left to drown. Another company would have filled the void eventually...you know...capitalism.

 

[SlugSlinger]

Ford was also involved in the bailout, and they spun it to sound like they didn’t need the money. They did borrow tax payer money with conditions to focus on what the .gov wanted ford to produce.

Ford's Bailout
Although Ford did not receive TARP funds, it did receive government loans. These were critical because banks were not lending during the financial crisis. It requested a $9 billion line-of-credit from the government. In return, it pledged to spend $14 billion on new technologies.

On June 23, 2009, Ford received a $5.9 billion loan from the Energy Department's Advanced Technology Vehicles Manufacturing program. In return, it pledged to accelerate development of both hybrid and battery-powered vehicles, close dealerships, and sell Volvo. It upgraded factories in Illinois, Kentucky, Michigan, Missouri, and Ohio to produce hybrid vehicles.

Ford used the funds to switch its focus to commercial electric vehicles. In 2016, CEO Mark Fields said, "We want to become a top player in electrified solutions. The company wants to lead…we can win such as with our commercial vehicles."

Eighty-one percent of the funds went to create new efficiency technologies for gas-powered vehicles. For example, they helped fund Ford's aluminum bodies in the F-series pickups. The Congressional Research Service estimated the loans saved 33,000 jobs. Ford will repay this loan by 2022.

Many argue that Ford needed the funds to sustain its cash flow during the recession. Ford says it was in better shape than the other two because it had mortgaged its assets in 2006 to raise $23.6 billion. It used the loans to retool its product lineup to focus on smaller, energy efficient vehicles. It got the United Automobile Workers to agree it could finance half of a new retiree health care trust with company stock. By April 2009, it retired $9.9 billion of the debt it had taken out in 2006.

https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670

 

[SlugSlinger]

Did Ford Take Bailout Money Too? Yes They Did.
By Bobby Kimbrough

An automobile dealership in Orland, California, which closed after General Motors cut ties with it and several hundred other dealers as part of its Chapter 11 bankruptcy restructuring efforts in 2009. Photo from www.wikipedia.org

When it comes to brand loyalty and fans of the other automakers, GM always gets beaten up for taking bailout money from the TARP fund back in 2009. Ford fans point out that the blue oval crew didn’t take any “bailout money,” which is almost true. When it comes to this topic, its like a duck floating on a pond. Above the water level, everything is calm, but below the water surface, the duck is paddling like hell. If we are talking about Troubled Asset Relief Program (TARP) money, then yes, Ford did not take any money from the TARP fund. Did they get bailout money from other sources in the government? Yes they did… and a lot of it.

Let’s reset the timeline history. The big three automakers appeared before congress in November of 2008, requesting $50 billion to avoid bankruptcy.

Congress put the automakers in the hotseat and refused their initial request, sending the automakers back home to refine their plans. Congress was willing to loan the companies money as long as it was tied to the development of energy efficient vehicles. GM, Ford, and Chrysler wanted another 25 billion from the TARP fund, largely to support the auto unions and jobs within the companies.

In December of 2008, the automakers came back to congress requesting $35 billion, of which congress agreed to $23.4 billion in bailout money using TARP funds.

What The Automakers Got

The breakdown of the Automotive Industry Finance Program had loans to provide operating cash to GM and Chrysler, as well as money available for the car buyers through GMAC. General Motors was awarded a $13.4 billion loan with $6 billion set aside for GMAC. Chrysler was given a $4 billion loan. These amounts were determined to be the best alternatives for the companies by congress.

Does that mean that Ford did not get any money from the governement? Hardly. Congress decided that the best alternative for Ford was to get funds from the Term Asset-Backed Securities Loan Facility (TALF), which is a government program for auto, student, and other consumer loans. These were very low-cost government loans to the tune of $5.9 billion that helped Ford tip-toe past bankruptcy and overhaul their factories to bring out more fuel-efficient technology. The Obama administration’s plans of having a million electric cars on the road by 2015 were being funneled through Ford and two other companies (Nissan and Tesla), and Ford fans had the audacity to call GM “Government Motors.”


Despite hiding behind the trees for a couple of years, the bailout finally caught up with Ford as evidenced by the Ford’s Twin Cities Assembly Plant in Minnesota which was closed in 2011. Photo from www.wikipedia.org

That was the tradeoff for Ford. They promised to fast-track development of energy-efficient vehicles and consolidate operations by making “greener” cars that the Obama administration wanted to see.

Ford Credit borrowed $15.9 billion dollars as opposed to GMAC, GM’s financing arm which borrowed $13.9 billion. These numbers make the perception that Ford was the only Detroit-based company that didn’t need a federal handout during the economic crash completely false.

For their part, GM agreed to streamline the number of brands they produce. The big three CEOs agreed to work for $1 a year and sell their corporate jets as well.

Let’s be honest here: Ford has gotten a free pass and earned market shares for being the only US automaker that “didn’t take bailout money,” when they did in fact, take government loans with the condition of making cars that the government wanted. Which company was truly “Government Motors” in the real behind the scenes scenario? That would be Ford, of course.

All of this information is public and easily researched. We don’t want you to take our word for it but we expect you to take a minute and look it up for your own edification. Then the next time a Ford owner says; “At least Ford didn’t take bailout money,” you can call BS and set the record straight.