European Stars And Stripes (Newspaper) - August 26, 1986, Darmstadt, Hesse                                Daily Many default on payments lose autos stories by Bob Hoeft staff writer ver the past two years thousands of service members in Europe have been hard pressed id keep up payments on expensive new cars Many have defaulted with eventual loss of their autos and costly repossessions for financial institutions. Cars have been abandoned on parking lots and left in garages with damages and unpaid Bills often with no insurance. Finance officials say booming car sales live digit sticker prices on -9w autos and easy financing have contributed to a record number of repossessions. Past policies and record 1984 and 1985 sales they said Are just now catching up with the Market thai has slowed this year with the decline of the Dollar. Officiate from credit unions that financed the vast majority of new cars sold overseas estimate thai 800 to 1 .000 cars will be repossessed this year in Europe. Despite new restrictive financing policies in will be some months until the repo Market settles Back to Normal they say. Since last october we be been lightening up our loan requirements " said Don Talbot european Field representative for Pentagon Federal credit Union in Mannheim. We re trying to gel people to continue payments on their  Tai Bol said. We Don t want them to use our lot As a dumping ground just because they re having financial  in Shellord England. John Woolen manager of Keester Federal credit Union s United kingdom offices says indifference by members has contributed to repossessions unfortunately Many of the repos we be had were wrecked dam fled or abandoned Woolen said. On the average we take a 50 to to percent toss on a repossessed  Henry Addison european manager for Andrews Federal credit Union Frankfurt says Andrews repossession rate has remained Well below the National  but a number of Andrews repossessions were abandoned. Most credit unions have had similar experiences. Gordon Simmons overseas manager for service Federal credit Union Kaiser Lautem says that once car owners get into financial trouble they tend to lose interest in their cars and Tot them run  for this reason we begin the repossession process after two months of default on payment Simmons said. Too Mduba it cannot Seji their ears and can no longer afford to keep them May turn them Over to credit unions. But failure to continue payments will be reported to credit bureaus in the states and such information will remain on file Lor seven years. When we receive a car at a member s request we will try to sell it for the beat possible Price Addison Rand Mehan. Saleswoman at Pentagon credit Union s car lot in Mannheim Germany says Many of Whoso who gave up cars were Low ran Inglese Bers saying up to $150 a month for Auto ln3cptpracuceofloo.percantfinancingis blamed by some credit Union officials for the current High Rale aug Naxos avs the danger of 100 percent Man cog Arent when a credit Union has to sell poor Artoe and ends up with a to the current trend Keesler credit offering 100 percent financing Ance e clients who qualify. Sotar 100 percent financing has Given us no . Sparks mrs Jennifer Andrews listen As Don Tai Bol Galvea information on this s3 porsche 944. Trouble but we re watching it very closely Woolen said. Simmons says the Rote of a credit Union should by to give advice on financial matters not just to make  since March to said credit checks have been run on All loan applicants. Addison at Andrews stresses the counselling Rale of credit unions. We believe the policy of a credit Union is to provide provident Loans and teach Thrift Ness in financial management he said. Indiscriminate lending practices can Lead to problems for members and credit unions " some very Nice cars at Good prices buying a repossessed car is a hit or  pickings run the Gamut from Good Topoor say credit Union officials who repossess cars when borrowers fait to meet monthly finance payments. We offer some very Nice cars at Good prices says Randi Mehan. Saleswoman at Pentagon Federal credit Union s repo to in Mannheim Germany. We get some other Cara that Are not very Good. The buyers wha do Best keep coming Back until they Lind the cars they want. It a car is clean when we repossess it chances arc it was cared for. If it s dirty with scratches and deals and beat up upholstery you can t be sure about it. Soma cars have very Low mileage because the owners could t afford to drive  Don Talbot european Field representative for Pentagon credit Union urges prospective buyers to lest drive cars. All cars Are bought As is. Credit unions cannot offer guarantees. Despite this Tai Bol says Pentagon credit Union has Many satisfied customers and Sells Many cars by word of  Gordon Simmons overseas manager for service Federal credit Union in Kaiserslautern Points out that some repos in Good condition usually Are available at favourable prices. We Lay All the facts on the table when a buyer is looking at a car the Date of repossession condition mileage etc.," Simmons says. All of Pentagon s repossessed cars in Europe Are placed on the Mannheim lot. With up to 100 cars at any Given time Pentagon has the largest repo inventory. The majority of these Are  Toyota and Nissan. In july. 54 cars were turned in at the Mannheim lol. In june Pentagon repossessed 36 cars. Henry Addison european manager for Andrews Federal credit Union Frankfurt expects from 50 to 100 repossessions in 1986. Andrews Sells its repos by displaying and advertising them at individual branches. Service credit Union which maintains a lot in Kaiser Lautem has had 36 repossessions so far this year with 12 cars currently on the lot. Included is a 1983 Nissan Bluebird at a list Price of s3.299 and a 1980 Volvo 244dl for $4,995. Both have . Specifications. Tin current Pentagon credit Union inventory in Mannheim includes a 1985 Toyota celica St with . Specifications for �6.500. A 1984 Bow 520i with German specifications Lor 17,100 and a 1983 porsche 944 with German specs Lor 110,000. Among Andrews credit Union repos Are three 1985 .-Specificatton Nissan at Wiesbaden a a 200sx listed at $11,500 and two pulsars each listed at $8,000. For credit unions doing less financing in Europe lha number of repossessions is smaller. They sell cars singly or in Small numbers at Branch offices. Pricing practical on repos  cars Are listed Al wholesale or below wholesale prices Pentagon credit Union s Talbot says. A buyer May offer the list Price or submit a bid below list. If the bid is not too much Betow the list Price and we be had the car Lor some Lima there s a Good Chance the buyer will gel the car Mehan said. Other credit unions establish asking prices Lor repos by using us. And foreign Book value. When a set Trie Price we look Al the Book value the Money owed on the car and the car s condition says service credit Union s Simmons. A buyer who does t want to pay our 1st Price May put in a bid. Alter a minimum of three bids we decide if the High bidder has bid enough to gel the  five other Federal credit unions Andrews in Frankfurt finance Center in Augsburg. Keesler in the United kingdom Fairchild in Northern Italy and Navy in Southern Europe and the United kingdom solicit bids pm repos. Most credit unions finance their own repos service credit Union finances them Al 6 percent with no Down payment. Pentagon credit Union requires 5 percent Down at 14.9 percent interest. Andrews credit Union finances them with no Money Down at 13 percent. . Tuesday augustas 1986 the stars and stripes Page 13