According to CNNMoney.com, the credit crunch has caused a traffic jam for people looking to finance new cars. But here in Temple, if it’s time to say goodbye to that clunker, money is available.
Casey Bramlett, finance manager at Johnson Brothers Ford Lincoln Mercury in Temple, said money is available, and lenders are aggressively looking for borrowers.
“We’re in a bubble here in this community. The banks that are here are solid banks,” Bramlett said. “They want to get that money out there.”
Bramlett said automobile sales are more closely linked to gas prices rather than stock prices. And that’s good news, comparing the dire situation on Wall Street to gas prices that in some cases dropped below $3 a gallon in the area this week.
“The car business is not driven as much on the stock market as in the fuel market,” Bramlett said.
Interest rates, of course, depend on an individual’s credit history, Bramlett said.
Michael W. Thompson, president of Extraco Banks in Temple, said they’ve got money, and interest rates for car loans are better than they have been in years. Thompson said the Central Texas financial climate is not connected to the Wall Street meltdown that saw the stock prices plummet again Wednesday.
“The basic difference ... we are locally owned, and locally managed. For 100 years, the loans we make are to Bell County residents - the folks we go to church with, have supper clubs with, coach Little League teams together,” Thompson said. “Local folks put money in our bank and we loan it back to the local folks. Way different from Bear Stearns. Way different from the things you’re hearing about on the 5:30 news.”
Down at Temple Santa Fe Community Credit Union, employees say they have ample money to lend at good rates, about 4 percent. Unlike other parts of the nation, they haven’t tightened borrowers’ qualifications. That was done long ago.
“We’ve been operating under a pretty conservative guideline for several years. Our good paper, our high-ranking scores can finance at 100 percent,” said 37-year employee and lending vice president Mary Ann Cosper. “But as we go down the credit score list, we expect people to put more money down, 10-20 percent.”
One segment of lending has dropped off at Temple Santa Fe.
“What we didn’t have, (was) people coming in borrowing money for clothes and school supplies like we used to get, the $500-$1,000 loans just for the extras,” said Karen Laster, senior loan officer.
Home loans, too, are locally available. Caren Hildinger, branch manager at Castle & Cooke Mortgage in Temple, said buying a house continues to be a good investment. Guidelines are now more stringent - credit scores above 580 - but that is a good thing, she says. And prospective homebuyers can overcome obstacles.
“With an action plan, and some time, they can improve their scores,” said Ms. Hildinger. “Credit experts say that 80 percent of all credit reports contain erroneous information, so being proactive to ensure one’s credit is in good shape is a great idea.”
