Who's Really in the Driver's Seat? A Little Presidential Humor

When the Democrats keep referring to themselves as the party of "change," is this what we should envision? Now that we know they (Hillary and Barack) can be driving mates, will they become running mates?

Car Mortgages:The Latest Trend in Car Financing

After receiving a few inquires about consumers stretching out their car loans, also known as "car mortgages," I decided to research this topic for an article I wrote for Black Enterprise magazine.

Could you imagine financing your next car for seven or eight years? According to a study by the Consumer Bankers Association, 58% of new vehicle loans in 2006 were for terms of six years or more, up by 3% from 2005. In used-vehicle loans, 48% were for six years or more, up from 40% for 2005.

What's driving consumers to opt for extended term auto loans? Michelle Singletary, syndicated personal finance columnist and host of her own show on TVOne, says, "People are doing it because they want more car than they can afford, and the only way to do that is to get a car payment longer than some people are married." Based on my personal analysis, like Singletary, I believe consumers are not purchasing vehicles within their budget, they aren't putting down a sizable down payment nor or they paying off their trades.

With a new vehicle costing an average of $29,024 in the third quarter of 2007, it took 24.8 weeks of median family income to purchase a vehicle, up .4 weeks compared to a year ago, according to Comerica Bank's Automobile Affordability Index. Moreover, in 2006 more than 36% of consumers were upside down - owing more on the vehicle than it's actually worth at the time of trade-in- based on data provided by the Power Information Network. Consumers financing their vehicles for three years or less owed an average of $3,588 on their trade, while those financing their vehicles for eight years or more owed an average of $5,157 at the time of trade in 2006.

Based upon the current economic climate, we know that the aforementioned numbers will continue to increase. Toyota Financial services recently announced they are now offering 7-year auto loans. Below is the typical profile of AmeriCredit extended term customers:

Annual income: $70,000 to $75,000

FICO (Credit) score: 670 - 800
Years at present employer: 9
Years of current credit history: 17
Percentage that are homeowners: 83%
Average amount financed: $25,200
Average annual percentage rate (APR): 9.5%
Specialty prime customers average finance terms: 7 years and 1 month
Source: AmeriCredit

Would you finance a car for seven or eight years? In some countries, consumers are allowed to finance their vehicles for ten years!

If Dr. King Were Alive Today, What Would He Drive?

As we focus our attention on Dr. King this month, have you ever wondered what he would have driven if he were around today? According to Tom Houck, who was King's personal driver and assistant, he was responsible for his transportation needs.

We do know if Jesus, another great leader, were still alive today, he would probably be cruising around the world in a Dodge Caravan, with the new swivel seats and built-in picnic table. Knowing Jesus, he would have been ministering at every bus stop, holding Bible study in his Caravan, according to young Biblical scholars attending a local Sunday school class in Atlanta.

Like most southern Baptist ministers of King's day, who tooled around town in the seventies, eighties and nineties driving "preacher cars"- Cadillac's DeVille, Lincoln's Town Car and Chrysler's Fifth Avenue - he probably would have driven one of the domestic land yachts, too. Unlike most ministers, since King was so frugal, he probably would have owned a Ford Crown Victoria or Buick LeSabre, the "working man's car."

As we entered into the new millennium, King would have been forced to transition into a new ride, since many of the big domestic road runners of the past no longer are being built today. With the exception of Dr. Joesph Lowery, president emeritus of the SCLC, now in his eighties, who is still driving a stylish Cadillac sedan, most ministers have traded their domestic makes for Mercedes' S-Class, BMW's 7-Series and Land Rover's Range Rover. And a few of today's preachers are still loyal to driving the domestic-based vehicles like Lowery; however, they're driving glitzy SUVs - Cadillac's Escalade and Lincoln's Navigator.

Now if you happen to be in same league as prosperity minister Creflo Dollar, you can drive around in a $280,000 Rolls Royce. According to Dollar's recent interview on ABC's Nightline News, his congregation rewarded him with the Rolls, each of the 28,000 members donated $20. Dollar also said during the interview, he recently sold the pricey car, giving the proceeds to a children's ministry.

If King were alive today, would he have accepted a Rolls from his flock? I seriously doubt it! Knowing King, who was the same person that took his $56,000 in earnings from the Nobel Peace Prize, giving it away to the civil rights organizations, he would have never accepted such a gift. Although Dollar recently turned over the keys to the Rolls, he continues to hold on to the church-owned private jet, ministering to his transcontinental flock. ( Dollar told Nightline his decision to relinquish the Rolls was in place prior to the Senate's random investigation of several mega ministries.)

If King were alive today, it's hard to believe he would have been as flamboyant as many of today's spiritual leaders. If he were alive today, he would have been driving a hybrid or taking public transportation, showing us his concern for preserving the environment. Or King could possibly be driving a Mercedes-Benz on loan from the dealership former mayor Andrew Young has owner-equity in within the Atlanta area. (Young was apart of King's inner-circle.)

As we take time to remember Dr. King, continue to honor and celebrate his legacy. I was just wondering, have some of our spiritual leaders embraced King's philosophy of equality, inclusion and economic freedom or has it been misinterpreted like the Bible scriptures for their personal interests? I was also wondering, why aren't there any dealers or automakers having a "King Holiday Sale?" I guess in this day of being politically-correct that wouldn't go over to well.

Share your thoughts. What do you think King would say about the transportation choices of today's spiritual leaders?

Your Ethnicity May Determine What You Drive

For the third year in a row, Strategic Vision has found through its annual survey of one hundred thousand new car buyers in 2007, twenty-seven thousand of whom were minorities - Hispanics, African Americans and Asian Americans - typically have an affinity toward certain brands.

Strategic Vision found that Hispanics look for an enhanced sense of security. African Americans are more attracted to models that reflect the success in their lives and express their individuality. And Asian Americans showed stronger interest in balanced, complete vehicle performance and style to match their lives.

Hispanic car buyers ranked the Mercedes-Benz E-Class sedan the strongest model in the luxury segment, followed by Infiniti's G25, and the Kia Sedona minivan, Ford Expedition and Scion xB in the more affordable category.

African Americans were five times more likely to buy a Chrysler 300 sedan than other ethnic groups. According to the study, two percent of all vehicles sold in the U.S. to African Americans are Chrysler 300s. (Ralph Gilles, the lead designer of the 300, is featured in the photo above. To read a one-on-one interview I had with Gilles, click here.) African Americans are four times more likely to buy a Nissan Altima than other groups. This group also favors the Toyota Corolla, Nissan Sentra, Ford F-150, Toyota Camry, Honda Accord and Honda Civic.

The top three models purchased by Asian Americans last year were the Toyota Camry, Honda Civic and Toyota Corolla respectively. The research shows Asian Americans are rejecting Fords.

If you would like to view the entire 2007 study, click here. What are your thoughts about this study? Do you agree or disgree with this study?