Automakers Allowing Hurricane Victims to Defer Payments

[-..__...]

I anticipate a surge of job openings for repo-men.


"DETROIT — The finance arms of the Big Three U.S. automakers said Tuesday they are allowing customers affected by Hurricane Katrina to defer their car loan payments.

Joanne Krell, a spokeswoman for General Motors Corp.'s GMAC division, said customers should contact local GMAC offices for an extension of up to 90 days. The company also will waive late charges for people who have been affected by the hurricane.

"We take a very commonsense approach to this,'' Krell said. She added that GM and GMAC plan to donate at least $500,000 to the relief effort.'

http://www.cars.com/go/news/Story.jsp?section=news&subject=recent&story=083005storycAP&aff=boston">More.

[achtung_circus]

1. Bless their stone cold hearts. nt

[Delphinus]

2. Ha ha

Are these displaced folks going to pay for a vehicle that was flooded? Or if they have no jobs for a long time? Someone over in GD posted a wonderful summary that makes this story seem nonsensical.

[raccoon]

9. what was the topic? nt

[Delphinus]

13. Subject: Over one million homeless (etc.)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x4525160

[sarcasmo]

3. GM trying to get some friendly pub out of this. What a JOKE.

They have no jobs you idiots. How would they pay their car payment in 90 days? The lucky ones can hope the car floated out into the gulf.

[smirkymonkey]

11. Yeah! "Come and get it you assholes!"

"My Chevy's probably halfway to Aruba by now."

[chicagiana]

4. Yeah like ...

As if GMAC wants to repo all those waterlogged vehicles.

[Stinky The Clown]

5. In the meantime, the cars are ruined

They've been flooded. They are worthless. Insurance will pay their devalued worth (which is to say the devaluation that happens as soon as you take title, not the devaluation that happened due to the flood). Then these people will be left to pay off a car that they can't even use ... and be on the hook for the difference between the new value and what they get paid by the insurance company.

The cars themselves will wind up in inner-city 'bargain' used car lots all over the country for bargain prices. They will be reconditioned, but will still be worthless due to the hidden coorision the new buyer will never be able to see. They'll then wind up in junk yards in less than 1/3 of their normal useful life.

Meanwhile, GMAC will get its due.

And remember ....... no more bankruptcy, suckers. :sarcasm:

[PurityOfEssence]

6. They're not worth repossessing, especially not those FUVs

Saw a great bumper sticker on a car at Trader Joe's a few days ago: "Wow, your great big SUV's AWESOME".

Having people default on loans is the last thing the car companys want; they need the revenue, and reposessing cars in a glut market makes no sense. Besides...it's hard to sell something with water damage.

Still, it's a nice gesture.

[bottomofthehill]

7. Come Repossess it

Dear Sir / Madam:
Thank you for granting me three months of no payments on my new car. DO me a favor and don't do me any favors. Don't grant me the extension come and get the car.

I assume you will need a diving team and a sky crane to bring it up off the oceans floor which is currently located in my front yard.

Your commonsense approach to this disaster is greatly appreciated.

[Justitia]

8. LOL - Now where did I put that pymt coupon book? -eom

[ConcernedCanuk]

17. In the glovebox silly! - where else??

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[buzzard]

10. Well you can't get blood from a stone.n/t

[Endangered Specie]

12. Right, I can just see Repo men in scuba gear.

"Why dont you go get the fucking titanic while your at it!"

[Spangle]

14. Some peopel DROVE out!

In GM cars that they need to make a payment on.

We are forgetting those that listened to the warnings. That DID what they were supose to do. Now they are stuck in a hotel or a shelter some where. And running out of money. No job, can't go home. All they may have is that Car. Which they need to make a payment on.

Some something like this does ease the stress and worry a BIT. But they still have to make payments.

This measure is directed at those who still have a car. But without jobs.. they still might lose the car.

[earth mom]

15. Well isn't that special?

How generous and kind of the auto makers to their customers who no longer have cars they can drive! And funny too, how the bankruptcy law goes into effect in just 6 short weeks.

How convenient! :grr:

IMO, it ALL stinks to high heaven and is just too convenient to be believed!

:tinfoilhat:

[Xithras]

16. Most disaster victims should still qualify for bankruptcy

No assets and no income will get you by even with the new draconian rules.

Believe it or not, the ones who will be in the most trouble are the ones who have the least damage to their homes and property. Their assets will still be worth quite a bit of money, but they won't have any income since the employers are all shut down. What the hurricane didn't take, the bank will!

[doc03]

19. They probably want them to get by until the new

bankruptcy laws take effect, then even though their cars are worthless they will have to pay off their loan anyway.

[ima_sinnic]

18. the greed-hogs could show they TRULY care by excusing the loans

... donating $500,000, isn't that special? don't put a crimp in your quarterly profit statement or anything.

[davepc]

20. What is GM supposed to do?

Forgive the loans, eat the cost of having sold cars they'll never get paid for, close down plants and fire workers to compensate for the loss of income?

[Zhade]

21. Wow, 90 whole days!

Does their generosity know no bounds?