Oregonians Need Cars but They Cannot Have Them

José Pinomesa, Chairman
Oregon Independent Auto Dealers Association

It is now November and the sale of vehicles has slowed down quite a bit.  I have always said that those with money will always buy what they want when they want.  The problem we have now is not so much with new cars and those that have the money but with used cars and those that need the money.  Many people that would like a used car cannot go through with the purchase.

This is due to many different reasons but the most obvious is that they need a job.  We still have an unemployment rate of 11.5 %.  If you do not have a job then getting an auto loan is close to impossible.  Lenders feel that with no job you will have no way to make your payments.  This year alone I have had more customers than normal looking for cars but say they cannot purchase one until they get a job.

Another big problem is getting the funding.  I have never had so many customers that really want to purchase a particular vehicle but cannot figure out a way to get approved for an auto loan.  They have jobs but either they do not have enough of a down payment, do not make enough or have too high of a debt to income ratio.  All of these are reasons for automatic turn downs.

I also believe that lending institutions are being extra careful during these times and are turning more people down than usual.  However you look at it Oregonians need cars but they cannot have them.  This is not only a tough predicament for those that want a car but for those auto dealers that have the cars for sale.

In times like this Buy Here Pay Here is offered by more independent dealers.  You will not be able to buy a car for $10K, $15K or $20K but rather around $5K or less and you make payments directly to the dealer rather than a bank.  It may not be your number one choice but when you cannot get a normal auto loan this might be your only option unless you can get a loan from a family member or friend.

This article was written by José Pinomesa who is the 2009-2010 Chairman for the Oregon Independent Automobile Dealers Association in Salem and the owner of José Mesa Auto Wholesale, LLC in Portland.  Buying your next new or used car from a member of a nationally recognized automobile dealer association will provide you piece of mind knowing that everything will be taken care of properly.  For more information please visit the following websites at www.oiada.com and www.josemesa.com.

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