Longer term loans limit the frequency of trade, and those that do trade, find themselves upside down. "Nothing down" is no longer an option with alot of lenders!
It's not uncommon for a person's car payment to include what was owed on the last two cars!
Some of the non-American auto companies are also reporting that sales are down and that times are tough.
Once credit is blotched from a foreclosed home.....this starts to take folks out of the new car market as well..as no credit....even those with great credit are finding that they now have to come up with larger down payments, which they always do not have.
There are a zillion reason why the auto market is down...it's not just the cost of labor...cars are simply not selling.
Until both the UAW and the Big 3 "get their game face on" they will continue to suffer!