Car prices, debt

The average amount financed on a new car was $26,221 in 2003, [said Deutsche Bank's Rod Lache], compared with $22,822 in 2001. [...] According to Mr. Lache, a full third of customers coming into dealerships have negative equity amounting to $4,000 a vehicle on average. Back in September, only three out of 10 had such a problem and the average amount was $3,000.

Otoh, those who aren't heavily in debt may be able to swing a better deal. But those who are in debt are probably going to depress demand.

( full article )

Note on Serzone

Also from the Wall Street Journal. ( Read more... )