Paul Taylor is the chief economist for the National Automotive Dealers Association (NADA).
There has never been a more important time to hear from the chief economist of NADA than now.
I was on the Audi mileage marathon and one of the stops was in Washington DC. The Senate was out of session, again, but Taylor set down with us to talk about the $700 billion bailout and the state of the auto industry for the last ten years.
With gas going down and the credit crunch in full swing consumers have lost confidence. Taylor talks about the tightening of the credit financing. Taylor says about 1/2 of the consumers have an average FICO score. Even some of the best FICO scores are being turned away or asked for more down payment.
Taylor talks about coordinated efforts from developed countries to get the credit financing running again.
Remember, car loans function like home mortgages. They have been packaged and sold to other groups. Since a car can be taken out of the country within 2-12 hours, companies can be concerned about their asset.