manufacturers in Germany, as finance arms of car companies find it
more and more difficult to find fresh funds according to AKA, the
German car banking association.
“Because of the tight conditions on financial markets,
refinancing has become more expensive,” spokesman for AKA Harald
Bertsch said. He added that the increasing cost of refinancing
cannot be passed on to customers, who are already reducing their
spending.
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All major German car companies – from BMW to Mercedes-Benz and
Volkswagen – have their own banks and provide loans and leasing
contracts, and they are all finding it tougher to cope with the
credit crunch.
Bertsch said that in order to lure back clients, the car banks
wouldn’t increase the costs for customers. He added: “The car bank
business is still profitable. Otherwise, the carmakers would not
carry on with them”.
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