Only 42 % of United States consumers who purchased a new car or a new truck during the past 90 days chose one that was made by Detroit companies, which is a grand decrease from 47 % a year ago. This is a rapid decline that was more than likely aggravated not only by the suffering economy, but also by the lower income levels that United States customers are experiencing. The credit situation, according to a senior director of industry analysis at the Power Information Network, is impacting domestics more than it is affecting the Asian markets. Detroit automakers have three primary brands, Chevrolet, Dodge and Ford. All of these brands attract buyers that have a median household income that is $5,000 or more below the industry average, according to the Power Information Network.

In this environment of much tighter credit, customers who are making more money are in a much better situation to purchase vehicles using cash. The more recent data from the Power Information Network shows that cash purchases of vehicles have definitely been on the rise in recent months because financing and leasing are becoming the less prevalent options for many consumers.

When gas prices began to go up in the second quarter of 2006, Detroit’s primary automakers experienced a serious headwind, seeing their retail share of the United States market drop below the 50 percent mark. The weak lending environment because of the credit crunch is the second headwind for these automakers to content with. Now not only are consumers tending to buy against options like the large SUVs and pickup trucks that Detroit automakers are known for because of the gas price fluctuations, but also because these higher price tags require higher financing and therefore less purchasing options. The recent retail market share performance of the Detroit automakers is a sign that even automakers are facing serious challenges in this suffering economy of ours.

Some of the other intense challenges that are being faced by the local automakers include perceptions of subpar quality, a lack of fuel efficient subcompact and hybrid vehicles, too many different dealerships and brands, vehicle lineups that are not quite as fresh as with other competitors, and even higher labor costs in relation to what foreign automakers offer. These things are disappointing, and even shocking, but they are simply a continuation of the same themes that we have been seeing for some time now.

Detroit automakers lost a combined 5 % points off of their market share in the last quarter, in comparison to the same period a year ago, which is the fastest year over year decline in two years. During this same period, General Motors lost a percentage point, Ford Motor Co. lost two percentage points and Chrysler LLC lost two percentage points. Two percentage points of market share is equal to the full production for an assembly plant for an entire year.

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Because of the problems facing our economy, most consumers are finding it difficult to obtain the lending that they need for things like purchasing a new car. However, what consumers are failing to understand is that the auto makers and car dealerships are experiencing the exact same issues relating to the economy, and are just as desperate to unload their inventories as you are to obtain a new vehicle.

With the current state of the economy, many people are facing poor credit or borderline credit scores, making a new car loan seem like something completely unobtainable. On one hand, consumers are definitely hurting when it comes to obtaining lending, and lenders are starting to cut back on the loans they are offering because of the state of the economy. On the other hand, these car dealerships and other potential lenders are desperate to unload their products to boost their sales and profits, which means that car dealerships are going to have to offer loans and other special offers to consumers if they want to keep their profits from crashing. Here are some brief tips for buying a car despite the faltering economy:

Make sure that you have an adequate down payment.

This shows the dealership that you are serious about buying a car. Your income may not be great, and you may have not have much in savings, but the more you present as a down payment, the better off you will be when it comes to obtaining a loan for the vehicle you want to purchase.

Check with local banks for funding assistance.

Rather than attempting to deal with the nationwide large names check out your local banks. It is the large name banks that are dealing with the most financial issues, and obtaining lending from them will be near impossible. Smaller, local banks are not seeing nearly the same impact and will be more likely to lend to worthwhile consumers.

Shop around on the internet when looking for a car loan.

The internet has numerous opportunities beyond what you will find in person through local auto dealerships. Most internet lenders are much more likely to lend the money that you need to purchase your new car.

Shop around for the right financing before you start looking for a car rather than choosing a car first before seeking financing.

Take your time when shopping for adequate financing, instead of rushing at the very last moment when you have the car you want but not enough money to purchase it.

The bottom line is simple: Auto dealerships are feeling the economy crunch just as much as consumers are. For this reason, they are still likely to offer auto loans and sell vehicles, but only if you are willing to think outside the box a little bit. If you follow the aforementioned tips, you should have no trouble obtaining financing from companies that are not being affected in the same way by the mortgage crunch. Combine special deals from desperate auto dealerships with auto loans from smaller, local banking and lending agencies and you should have no difficult obtaining the lending that you need to purchase the vehicle that you require. Walking into a dealership with an already approved loan is an excellent way to gain leverage over the auto dealerships to get the vehicle that you want at a price that you can handle.

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Whether you are tying the knot, purchasing your first home or just beginning a new career, all of these milestones are worth thinking long and hard about because they can have important impacts on your overall financial picture. As you approach each of these important financial milestones, it is vital that you take the time to consider just what financial consequences will exist for each situation. You can continue to make educated financial decisions, but you may find that you need to adjust your spending habits in order to reach the new goals in your life. Here are six of the most important financial milestones and what they may mean for your financial picture:

1 - Tying the Knot -

One of the most exciting times in your life is getting married. It is thrilling to begin the necessary planning and preparation for the wedding, and afterward you will begin your financial life coupled with someone new. Money is one of the most difficult concepts within a marriage, so it is vital that you address financial planning at the very beginning of your marriage if you want to tackle all the hard stuff first. This will help you and your spouse work toward the same goals through open communication and strong financial planning, which will allow your marriage to be prosperous and successful.

2 - Buying a Home -

Buying your very first home is another big and exciting time in your life. This is a very large decision to make and a commitment that you cannot easily get out of once it’s made. You will need to be sure that you are absolutely ready to purchase a new home before you do it. Additionally, you are going to need to have a firm understanding of the terms of your mortgage if you want to handle it correctly. You should absolutely have extra money set aside for the purpose of dealing with emergency home repairs and other potential disasters.

3 - Changing Careers -

After having been in the workforce for a few years, it may be time for a new career. Look for promotions within the company that you already work for, or look elsewhere to find benefits that are better, or a salary that is more lucrative. This is a vital step in your life and a real financial milestone.

4 - Buying a Car -

You may also eventually reach a point in your life where buying a new car is important. Cars are necessary in most cities. Make sure that you are properly preparing yourself for such a purpose. Pay cash when possible, or shop around for the best possible loan that you can obtain.

5 - Getting Out of Debt -

If you have any debt, you need to start working to get out of it as soon as you have properly settled down in the working world. Use your money wisely, and you can begin to accumulate true wealth once you have eliminated debt from your life.

6 - Investing Your Money -

Now you should begin to invest your money as wisely as possible. You are going to be solely responsible with the costs associated with retirement, so you absolutely must begin to plan now. If you want to live comfortably, you have to start saving as soon as possible and for as long as possible.

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