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New auto loans could soon extend out to 84 months

Cars and trucks are more expensive than ever before. In order to boost sales and help consumers afford new vehicles, automakers are offering longer and longer terms for auto loans. This past week, Bloomberg reported that FCA's Ram Trucks division is currently offering the longest loans. Some stretch to 73 months. Jeep, Fiat and Chevy aren't far behind. More noteworthy is that we'll likely soon see lenders moving from 73-month to 84-month loans. That's seven years worth of interest. More than two-thirds of US auto sales come from light trucks like the Ford F-150, Chevy Silverado and Ram 1500. The average transaction price of a new vehicle is well over $30,000. It's not difficult to spec out a heavily-optioned truck up to $60,000. Vehicles depreciate from the moment they roll off a dealer lot, and these six or seven-year loans could hurt consumers and lenders both in the long run. The U.S. Senate voted last week to kill rules that would prevent discriminatory auto lending. These Obama-era guidelines were meant to curtail lenders who offered higher loans based on race, religion, sex or national origin. Related Video: News Source: Bloomberg Chevrolet Fiat RAM Car Buying car loan car values

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

Nissan Leaf has outsold Chevy Volt by 50% so far in 2015

We know, we know. The Chevy Volt and Nissan Leaf sales numbers for mid- to late-2015 aren't all that meaningful because of the impending arrival of the next-gen Volt and the expected but not-yet-totally-confirmed debut of the second version of the Leaf. Nonetheless, tracking the sales of the first two major plug-in vehicles is something that remains interesting to us, if for nothing else that the all-electric Leaf remains slightly more popular than the plug-in hybrid Volt after all this time. If we just look at August, the numbers were basically tied in the US. Chevy sold 1,380 Volts while Nissan moved 1,393 Leafs. But when we take a 10,000-foot view, the differences starts to appear. So far in 2015, GM has sold 8,315 Chevy Volts while Nissan has sold 12,383 Leafs. That means that the Nissan has outsold the Chevy by around 50 percent (to be specific, it's 48.92 percent). Since the two vehicles went on sale in the US at roughly the same time at the end of 2010, 81,672 Volts have been sold, compared to 84,705 Leafs. That's a difference of only 3,033 vehicles, so proponents of both powertrains can hold their heads high. Looking just at last month, Volt sales were 45 percent lower compared to August 2014. So far this year, Volt sales are down 36.7 percent. The Leaf didn't fare any better. Month-to-month, Leaf sales were down 43.7 percent in August, while year-to-date, Leaf sales are down 65.3 percent. Those second-gen models can't come soon enough. As always, we'll have our broader wrap-up of monthly green car sales for August up soon. Stay tuned. Green Chevrolet Nissan Electric Hybrid ev sales