NEWS

WIRES

OTHER

Carseek.com Helps Readers Negotiate the Downsized Automotive Market

Carseek.com, the California-based automotive site, has responded to the dramatic downturn in the U.S. automotive industry with a new section entitled, "Rapid Downsizing of the U.S. Auto Market." The material is intended to keep readers informed about the latest developments in the car market as well as to help them adapt by either holding on to their existing vehicles longer or by finding reliable, quality pre-owned vehicles.

"When you get a 32 percent industry-wide drop in one month and have General Motors stock at its 1943 value, people start getting scared," said Wes Mayder, CEO and President of Carseek.com. "People's first instinct is to hang on to their money, but sometimes circumstances are such that you just have to get something to drive. We're trying to give people the information they need to make a choice. Do I hang on to what I'm driving or do I opt for a previously owned vehicle? For people who have never done it before, buying 'used' is daunting."

The good news is that carmakers are lowering prices and offering incentive packages in an effort to bolster sales. Drivers who have the money are in a position to make some really good buys and consumers with good credit ratings are still able to find car financing. "There is credit out there," said Mayder, "you just have to be a little sharper about looking for it. Large banks like Bank of America, Citibank, and Wells Fargo are diversified enough that they can continue to give car loans."

The catch is that the current economic situation, which is marked by a serious contraction of credit, will result in much more strict loan requirements. Some consumers may have to defer a purchase while working to improve their credit scores. "Bottom line, people are going to have to be more savvy about their credit position and more proactive in going after bad credit car loans and resolving their issues," said Mayder.

Additionally, drivers will have to accept some hard realities. Those who are "upside down," meaning that they owe more than the car is worth, will be stuck driving what they have until they catch up. Leasing, long a staple that allowed people to change cars often is more or less off the table and previously owned cars are suddenly more attractive and potentially necessary for credit qualification.

"We're trying to keep up like everyone else," said Mayder. "We've been writing about cars and helping people find financing since 2005 and we're not going to stop now. Our readers need a different class of information now and we're working hard to deliver that."

At Carseek.com vehicle reviews are posted according to manufacturer with daily news briefs appearing in the site's right-hand column. Additional tools like "low cost car insurance" services and "Car Quotes" can also be found on the top menu with access to the site's comprehensive library under "Articles." The editors invite your questions, comments, and ideas. Send email to: editor@carseek.com.