While many would not believe it, the housing crisis is beginning to have an effect on motor loans. Many homeowners are faced with such high payments on their homes that they are having to face a choice on which one to pay and their motor loans are suffering. This is turning into bad news for automakers who rely on motor loans for the majority of their business.Ellen Hughes-Cromwick, the president of NABE and the chief economist for Ford Motor Co., said that, “34% of those who believe the Fed is being too stimulative and thus raising inflation risks had more than tripled from the past survey.” She also noted, “this reflected the concerns many economists have about the threat inflation poses, with crude oil prices hitting records above $102 per barrel and food costs rising. Both consumer prices and wholesale prices jumped sharply in January.”If you are at risk for losing your home and are having trouble making payments on your auto loan, experts recommend getting a refinancing deal now, before it is too late. Cars are a vital part of our daily lives and most people cannot afford to default on their motor loan.
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