Sunday, March 8, 2009

Feeling the 'Crunch'

A week ago or so I wrote how I tried to do my part for the UK economy and get myself a new Land Rover but was rebuffed at every turn.

So I was forced to 'settle' for helping France or Germany's economies as Mercedes, Volkswagen and Citroen treated me the way that I have come to expect them to. That being salesmen trying to sell me a car. Land Rover seem to think that cars are meant to sit in showrooms and seaports or something.

So after agreeing to prices and options the next step is for the dealership to acquire finance on our behalf. Less than 2 years ago when we bought our last new car the 0% finance was approved over the phone at the dealership in about 15 minutes but of course we are in a severe recession and banks are tighter with credit than a frog's butt underwater even though governments are trying to create circumstances and incentives for them not to be like that.

But it seems they can't help themselves.

Even though my wife has a long and perfect credit history and I have a short and perfect one we were still turned down at every dealership we went to. We are utterly amazed. Even the car manufacturer that we bought a new car from in 2007 and paid on time every month for 17 months before paying off the total sum turned us down... WTF!!

So, I made an appointment with a manager of the dealership that we had bought a car from before and explained to him the situation. He is currently trying speaking with the higher ups at the finance company trying to get this sorted.

I sort of feel bad for the dealerships all around the country. I saw in the news a few days ago that new car sales in February were down almost 22% from February 2008. And that in late January it was reported that 300,000 people were turned down for car loans in the UK for a 6 month period in late 2008.

So there are a whole bunch of us out here looking to spend our money but not able to because the banks and finance companies want to hoard their cash and not loan it out. Hence putting pressure on the car manufactures who are begging governments around the world for tax-payers money...

What can be done to get the bankers to stop being afraid like George Bush at an Iraqi shoe factory?

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