Buying Domestic Cars with Bad Creditby Steve Cypher on Wednesday, September 26th, 2012
Aside from the nameplate shoppers should also check the window sticker if they are looking to finance with no credit auto loans a new car having the most domestic content
It sometimes makes a difference
Especially in our home state of Michigan, it’s been our experience that even buyers with car credit problems sometimes prefer financing a domestic car.
At Auto Credit Express we understand the reasoning because we’ve spent over twenty years helping car buyers with low FICO scores find dealers in their area that can arrange for car loan approvals. It’s also why we continue to educate credit-challenged consumers on the subprime auto loans process including the topic we’re covering today: where to locate the information on the domestic content of new cars.
A while back, it was easier to be sure you were buying a domestic car because practically all the manufacturing operations for General Motors, Ford and Chrysler – the “Big 3″ – were either here in the U.S or in Canada.
But since that time Chrysler has been taken over by Italian manufacturer Fiat, the Asian and Korean manufacturers began assembly operations in North America and the domestic brands began moving more than a few of their parts and assembly operations to Mexico and even Asia.
New car origins
Because of this, the American Automobile Labeling Act of 1994 was enacted to inform new car buyers where new vehicles were assembled and where their parts came from.
As a result, each new passenger vehicle sold in the U.S. must display a label with the following information:
• The percentage U.S./Canadian equipment (parts) content
• The names of any countries other than the U.S. and Canada which individually contribute 15 percent or more of the equipment content, and the percentage content for each such country (a maximum of two countries)
• The final assembly point by city and state (where appropriate), and country
• The country of origin of the engine
• The country of origin of the transmission
• A statement that explains that the parts content does not include final assembly (except the engine and transmission), distribution, or other non-parts costs.
Note: content percentages for U.S./Canada and other countries, are calculated on a “carline” basis rather than for each individual vehicle and may be rounded to the nearest 5 percent. The term “carline” refers to the name of a group of vehicles which has a degree of commonality in construction, e.g., body and chassis (the Ford Focus and Fusion are separate “carlines”).
We’d also like to point out that the profits made on vehicles stay here in the U.S. for both Ford and General Motors (as well as other smaller domestic manufacturers), while the profits on all others essentially leave the country. That being said, many foreign manufacturers have invested millions of dollars in facilities here in the U.S. and also support the economy through their payrolls as well as the plants and payrolls of their supporting supplier companies – many of which are also located here.
The Bottom Line
For new car buyers who want to support the domestic auto industry or know the domestic content of any vehicle sold here, the NHTSA publishes an annual vehicle list available on their web site at: www.nhtsa.gov.
Something else that’s good to know: Auto Credit Express specializes in helping consumers with credit problems find dealers for their best chance at receiving auto loan approvals.
So if you’re serious about getting your auto credit back on track, you can begin now by filling out our online car loans application.