In spite of the increase in the interest rate on auto loan, the discount rates allowed it to be not felt by the borrowers. The increase has almost doubled in the last nine months of the year. The prevailing tight Cash flow in the market do not favor the dealers.
Market readers find it tough to predict the reaction of public due to the increase in the auto loan ratesFebruary 2, 2006
Enjoy the comfort of a car with an added cost of interest
January 20, 2006
Budget Deficits
The interest rates, such as home mortgages, many auto loans, some home equity lines of credit are on a high these days. In the business sphere, rates on corporate bonds are expected to go up. It would then become even more expensive to borrow in order to pay for new plants and equipment and other capital investments. All this is being attributed to a succession of budget deficits. Democrats blame the tax cuts for the government's red ink. Economists are vexed by the probabilities of budget deficits as the size of the current budget deficits as it is not clear if a crisis is imminent.
