The Associated Press reports that Toyota’s U.S. car sales fell to their lowest point in more than 26 years as Americans reign in their budgets and battle job losses and the difficulty of finding car loans. Also, many consumers in the Dallas-Fort Worth area are delaying big purchases such as buying a new car and avoiding the extra burden of a car loan. With massive job losses around the country, many Dallas-Fort Worth residents are experiencing fears about becoming another victim of unemployment, massive debt and eventual bankruptcy.
Many foreign automakers saw U.S. automakers facing bankruptcy; but hoped that the financial turbulence would stay confined to American shores. But there has been no such luck; the credit crisis is having hard-hitting and far-reaching consequences for even foreign automakers. With the extra expense added to buying foreign automobiles many Americans must take out a car loan even on a used foreign vehicle. And of course with every car loan there is a risk for both the creditor and the debtor. The creditor risks a car loan default, especially in times of economic instability and the debtor risks possibility that he or she may be unable to repay the car loan in case of unexpected unemployment or reduced wage-something that we may see more of as businesses try to restructure their debt and save their own bottom-line.