Chicago Auto Dealer Groups: Credit is Available

Washington DC November 3, 2008; The AIADA newsletter reported that financing for new cars is available to consumers, say groups as varied as the used-vehicle retailer CarMax and trade associations that represent new-vehicle dealers and auto lenders.

General Motors, Toyota, and Ford are running similar advertising campaigns. "There's been negative press regarding the financing situation on new vehicles," says John Phelan, chairman of the Chicago Automobile Trade Association, which represents more than 500 franchised dealers in metropolitan Chicago. "We had to counteract that."

The dealer group is broadcasting TV and radio commercials that tell new-vehicle customers that they can get competitive rates for loans and leases.

"People are in gridlock," spokesman Paul Brian told Automotive News. "They don't know what to do. We have to reassure them."

CarMax, which operates 99 used-vehicle dealerships in 46 U.S. markets, offers its own customer financing. "Our financing is a key competitive advantage in this environment, where many other automotive retailers may have fewer financing options," says CarMax CEO Tom Folliard. "Our ability to finance qualifying customers has not significantly changed."