Unfortunately they panicked and overreacted. The result? Only the most well qualified buyers with stellar credit could get a loan. There were many people who could afford to pay car payments, but they couldn’t get financing at decent rates, so they didn’t buy a car. As buyers disappeared, car dealerships started offering spectacular incentives, including low and even zero interest rate loans. But those are only available to those same well qualified buyers.

The next problem in the downward spiral was about the stability of auto manufacturers who weren’t selling cars. What happens to your warranty if General Motors goes under?

On Monday, President Obama announced that the federal government would stand behind car warranties. That removes that hurdle.

Today GMAC announced that they will extend credit to car buyers with credit scores below 620. If you are one of the many people who could almost buy a car, now is your chance. GMAC has committed to making $5 billion available over the next 60 days.

Maybe this is the beginning of a recovery for the auto industry, or maybe we have a ways to go. Either way, if you’re planning to buy a car or truck any time soon, this is probably the right moment. You can even contact the Financing Department of your local GM Dealer by phone or email to see if you can get a loan on that car you’ve been thinking of.

Dupage County Cadillac
Los Angeles Cadillac
Southern California GMC
California Chevy Dealer
Riverside Auto Mall
Chicago Cadillac

After a 14-year reign at the top of JD Power and Associates Dependability Study, Lexus has been supplanted by Buick and Jaguar, who tied for the top spot.

JD Powers and Associates polled 46,000 owners of 2006 model year vehicles about problems with their cars. The results are measure in PP100, or problems per 100 vehicles. Buick and Jaguar tied for the fewest problems per 100 vehicles: 122 for each. Compare this to an average of 170 PP100.

This is the 19th year that JD Powers and Associates has conducted their annual study. The results are widely used by consumer to make informed decisions and by manufacturers to improve the reliability of their products.  Indeed, the average PP100 is 170 in 2009, down from 206 in 2008.

The current recession has made reliability more important than ever. Car owners are keeping their cars longer than in the past, and a better dependability rating means decreased car repaircosts. Even if the repairs are covered by warranty during the first few years, it’s an inconvenience to the owner. It also speaks to the car’s probable reliability after the warranty period expires.

Buick has been in the top 10 every year since the study was redesigned in 2003. In 2007 they tied with Lexus for the top honor. Jaguar, previously plagued with a reputation for unreliable vehicles, moved from tenth place in 2008 to tie for the first spot in 2009.

Winners of segment awards for individual models include Toyota, Lexus, Lincoln, Ford, Honda, Mazda and Mercury. Toyota took the majority of the awards for its Prius, Highlander, Solara, Sequoia and Tundra.

Source: JD Powers and Associates