Car sales gave a big boost to America's economy, but much of that was owing to zero-interest-rate financing and other incentives, which are now reaching their limit.
In the fourth quarter of 2001 consumer spending grew at an estimated annual rate of more than 4%, partly thanks to discounting and zero-rate financing for car purchases.
To that end the best deals we could locate among 2012 compact and subcompact cars were cut-rate financing deals on the highly regarded Chevrolet Cruze compact sedan and the new subcompact Chevy Sonic.
The immediate, under-the-radar problem for the municipal bond market is that borrowers relied on banks to backstop their credits and lower short term funding costs when the credit crisis shut the door on auction rate preferred financing.
In their simplest forms, debt financing is when a startup agrees to pay back a loan with a predetermined timeframe and interest rate and equity financing is when the business sells ownership shares in exchange for funding.
The effects of October's zero interest-rate car-financing programmes continue to be seen in America's economic data.
Significant interest rate discounts offered by online financing sources are advertisements, like everything else, if it sounds too good to be true, it is.
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The final bill approved by Congress will limit the length of time those loans are available, but will put the savings toward financing the interest rate provision.
An interest rate (or a lease rate) is simply the price of financing.
Hardest-hit would be interest-rate sensitive stocks of consumer-goods, financing and auto companies.
In an interview, Lesser told me he believes Power REIT will be able to obtain bank financing for the property at an interest rate in the high 5% range.
Another potential complication is how the growing burden of financing the dividend could impact the dividend growth rate going forward.
And that means the U.S. savings rate will be rising, so reducing the need for foreign financing of America's twin current account and fiscal deficits.
They have borrowed not only for their own direct purposes to build public works and housing but also for enterprises known as local-government financing vehicles, whose businesses often have a low rate of return.
From 1999-2004, GMAC's mortgage and insurance businesses enjoyed a compound annual growth rate of 25%, compared to 7% for the auto financing business.
Harley's chief financial officer, James Ziemer, expects a rate increase this year and is braced for earnings growth at the financing operation to fall from 65% to 25%.
The auto industry selling rate now holds over 14 million in a firm used car market, low cost consumer financing and the aging car population.
An unofficial audit was carried out in 2007 by Sir Derek Wanless, who had led a review into the health service's long-term financing needs that underpinned the decision in 2002 to carry on spending at a record rate for a further five years.
And with financing rates at near record lows, automakers should continue to build showroom traffic with cut-rate loans and affordable lease deals throughout 2012 on all but the most in-demand models.
The year was 2005 and financing was easy to come by, if you were willing to get an interest-only adjustable-rate mortgage.
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