European Stars And Stripes (Newspaper) - February 7, 1978, Darmstadt, Hesse                                Later pod Chance  be in the i Rod were Lucky if we get 80 percent of Nae from repossessed to Pells reported so repossessions in the largest number or any credit onion operating in the euro Pean a an attempt to limit lending in inti buttons prefer use of the allotment whereby monthly payments Are  deducted from i while the Borrower has the option of shopping for by far the largest slice Ign die european Carload Market is Nan idled by credit Liberal loan Iri Ilch in some cases permit full land generally favourable interest Sive credit unions the Edge Over their com particularly in the financing of Lew military operating under new department of defense contract since Are designing a loan package which 1 Spring could increase their share of the or credit under present loan Banks american express and Hichme Manhattan in Europe Are limited to Lite financing of secondhand cars on Signa Ture Loans that cannot exceed and Pusl be paid Back in two by credit unions routinely put up to for cars High salaried incl Fri dials May borrow even More for luxury f to mobiles for three and four German commercial Banks and off base loin companies backed by Amer inn Money my Home round out he car credit picture in annual interest rates that run from 7 to 8 Are the Good news of German Bank but complications in arranging a itral in a foreign and the in Jota to future of the Dollar Mark Exchange tile have acted As deterrents to such a dealer Selling european cars to Amer jeans in the Frankfurt area eases the Way it German Bank Loans by handling the a Ottwork and providing clients with copies v the loan contract in americans use German inks at the recommendation of relatives wives and in communities where Money is not readily at Hess Isch Oldendorf air a 1 american Community in North cer air Force personnel have taken out i with two German Banks because is no credit Union or banking facility a base spokesman described the loan Rice provided by the German Banks As dependable at very Good inter As with the credit Turnan Banks hold the titles of new Auto Hies they finance and for just about All they require a convenience is the big Appeal of off on the lot checking out the checking out the base loan but the customer pays for this convenience in the form of High interest directed out of new is one of two loan companies doing extensive business in Germany through agents conveniently set up in areas of heavy troop car lot operators in the Vicinity of Mili tary installations often try to get their customers to take out Omni Loans for car purchases of up to a Frankfurt dealer claims he was offered a Kickback to direct business to but insists the credit Union is a better Deal for the i omnis annual interest runs from 22 to 35 depending on the terms of the in some troop areas Omni is the Best known source of in the Mannheim shopping Center a tit As inflation eats up the pay boosts of cent a growing army of motorists is increasing sums of Money for Hose evermore costly pointed in the direction of a place he called the Davis loan an erroneous reference to an office where gis daily sign up for charter flights and Omni Karl Frankfurt manager for stresses omnis interest in the secondhand car financing far Loans of up to with an obvious Eye on lain Prech said because of the heavy traffic and the High costs of automobile insurance i think the Soldier should not buy a new car in Ger he should save his Money for delivery of a new car in the slates where insurance rates Are More favourable and the traffic is less Gecko government employees financial Corpora on is the second company underwriting Auto Loans for americans in a member firm of the Kico Refco Loans Are available at 18 German offices at annual interest rates of to despite an Overall increase in the size of the car loan business last Ceffo business is at least part of the reason for the decrease is in the past Refco paid commissions to Auto sales people a policy that has been Dis a car dealer who regularly received Money for sending customers to Refco claims he Hast had a commission in More than a Ray european operations manager for the says this practice has been whatever the reasons or the overseas manager for predicts the collateral loan business principally for cars will continue to wed like to write More car but we dont have the Gross id say the majority of our car Loans arc a matter of credit unions and military Banks successfully compete with loan com panics in the used car credit Market by offering signature Loans up to for annual interest Rales of 12 new car credit is provided for the most part by credit unions at annual interest Rales of 9 to 12 depending on the credit the size of the Down payment and the duration of the even at 12 the highest credit Union rate permitted by credit Union financing compares favourably with the Best rates offered by commercial Banks in Only special offers dip below 12 and such plans invariably Are lied to sub stall Al Down payments and close scrutiny of the borrowers credit a Long advertising 36month Auto financing at annual rates of reported its 11 leading competitors charge an average rate of percent Tor similar largely due to the increase in new car credit unions loaned More Money to their european clients in than the pre ceding year when total credit ran an Esli mated this Irand is expected to continue in statistics provide a measure of the Cvar expanding Auto Credill Wilh some Auto registrations at motor vehicle offices in the Netherlands and the re placement Factor alone represents a Large annual additional millions of dollars Are spent for the delivery of new cars in the army air Force Exchange system a Fesl sales account for the big Gest piece of us car credit for cafes reported sales of new cars to european customers the majority for pickup in to this figure must be added thousands of cars purchased from european the largest of which is the Canadian forces automobile transaction with sales to americans during the latest 12 officials estimate that 90 percent of All new cars sold to americans in Europe Are around and around the automobile credit merry ground a National habit that began before world War 1 to sup port a budding Auto Industry now runs in excess of so in the midst of the great wu1 the Oklahoma warned that America would be the first nation in history to ride to the poorhouse in the nearly a half Century has passed since Rogers genial Tongue Ash and the nation is More involved with Auto credit than while it is impossible to deny the Cost of this it also is impossible to imagine doing without us consumer solution to this dilemma is not to eliminate but to manage credit that is february the stars and stripes Page a7