Prozac for angels

By now you’ll most likely have heard about the dire financial situation the western world has found itself in: banks going bust, stock markets crashing, home being repossessed.  It’s all very worrying for the typical home owner these days and companies a like.

It seems that at this point we are all in need of some form of lending whether it’s a loan, credit card or a mortgage to buy a house.  One industry that is seeing a significant impact is the motoring industry.  Now we’d expect people to not being able to fork out for a Ferrari but these days car companies are struggling to even sell their lower priced family cars.

Why is this happening?  Well most cars purchased over the past ten or so years may not have been bought out right, with not many people, especially younger drivers being able to afford the new cars that have the safety features and other driving essentials.

Car manufacturers have now begun complaining that they are making new cars and not enough people are buying them, blaming less consumer spending and that many people have decided to buy cheaper second hand cars instead.

The solution is for a car dealership to either offer to sell the car on a finance agreement where the buyer pays a deposit and then pays back an amount every month over an agreed period of time, this continues until the car’s ticket price is reached but the downside is that this will operate similar to car loans so you will be paying interest on each payment and end up paying a significant amount extra on top of the listing price.

It is possible for you to get an unsecured loans in order to buy a vehicle and if you are able to get a loan for this reason and get a favourable interest rate then by all means go ahead and snatch up that deal!  This is unfortunately becoming a rarity with the current lending market being extra careful with who they lend their money to.

If you are unable to get a personal loan then it’s possible to try and go for a secured loans as these typically have a greater approval rate, assuming you have enough equity to secure the loan against in the first place.  If you are unable to get that loan then you may need to consider other options as for now at least the auto industry will have to keep stockpiling those shiny new cars until the day comes when we can spend more freely again.