Practically all businesses are desperate to improve their sales and this piece of news sounds disturbing though good if you are aching to own a brand new car. Report has it that car loan interests will be shot down to entice vehicular sales which is fine and good. But the thing is, it will also add to the woes of debt and receivables, a prime suspect as to why big name car manufacturers are operating on the red at the moment.
Is it a good move? Depending on your standpoint, it can be varying. For one, with practically zero interest in car financing, why not grab the opportunity? What is the basis of it all sales or income? If it is sales then well and good! Income? Highly unlikely!
Remember, receivables are notes obliging a buyer to pay. But what if he defaults? What if he goes into hiding or declares bankrupt himself? Now for the big three (General Motors, Chrysler and Ford), that would only aggravate their problems and perhaps tow in the other car distributors (Toyota, Mazda, or Mercedes Benz) as far as losses in car sales is concerned.
Via Cleveland.com
Tags: brand new car, car distributors, car financing, car manufacturers, car report, car sales, Chrysler, Ford, General Motors, low interest loans, Mazda, Mercedes-Benz, Toyota