Honda May Raise 100 Billion Yen to Finance Car Loans

Honda Motor Co., Japan’s second- largest carmaker, may raise about 100 billion yen ($1 billion) by selling asset-backed securities or commercial paper to fund car loans as it expects demand to recover later this year.

The credit environment “has changed dramatically,” said Executive Vice President Koichi Kondo in an interview yesterday, adding that the funds would also be used to repay debt. Interest rates “may be the cheapest we’ve ever borrowed at.”

Honda expects global vehicle sales to rise to 1.65 million units in the second half of the year ending in March, compared with 1.55 million units in the first half. More people buying cars will require more money available for loans, Kondo said.

“If you don’t need to borrow, that means things are looking bad,” he said.

In the first five months of the year, Tokyo-based Honda’s sales in the U.S., its biggest market, plunged 34 percent as higher unemployment deterred buyers. In Japan, sales have dropped 16 percent. The company’s new Insight hybrid helped it withstand a 29 percent industrywide sales decline in its home market during the period.

Honda’s fundraising plan would follow the company’s sale of 70 billion yen in three-year bonds on June 4, its first bond issue in 16 years. Rival Toyota Motor Corp., Japan’s biggest carmaker, also plans to increase a planned bond sale 63 percent to about 130 billion yen, according to two bankers familiar with the deal. Sony Corp. earlier this week raised 220 billion yen in its biggest-ever bond sale.

“Automakers want to make sure that they secure funds when they can by as much as they can,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “The borrowing environment is now much easier.”

June 2009 Chrysler,Jeep,Dodge Incentives Details

Even if you have bad credit you can take advantage of the incentives on many new Chrysler Jeep and Dodge vehicles during the month of June

Putting the spurs to sales

Here we see that since Chrysler sees itself emerging from bankruptcy this month, the company sees this as the opportune time to offer new enhanced incentives on many of its most popular vehicles.

“Beginning this month we are pleased to offer special finance options to our customers through our new preferred lender, GMAC Financial Services,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. “Our dealers are now activated for retail business through GMAC Financial Services, which gives consumers more financing options as they look to purchase from our exciting line up of Dodge, Chrysler and Jeep vehicles.”

Incentives for all customers

And while GMAC is not in the bad credit car loan business, all of the cash incentives – as well as owner loyalty cash – can be used by all customers, regardless of where they finance their new Chrysler car.

Here are the current incentives:

Jeep

2009 Commander
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Grand Cherokee (excl SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Grand Cherokee SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Liberty Limited
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash

2009 Liberty Sport
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash

Chrysler

2009 300 Limited
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 300 Sedan Base/Touring
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 300 Signature Touring
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 300C (excl. SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 300C SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Aspen Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Aspen Limited
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Sebring Sedan Base
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Sebring Sedan Touring/Limited
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Sebring Convertible
Get $3,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Town & Country LX
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

2009 Town & Country Limited
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

2009 Town & Country Touring
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

Dodge

2009 Avenger R/T
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Avenger SE/SXT
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Caliber R/T
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Caliber SE
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Caliber SRT4
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Caliber SXT
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Charger R/T
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Charger SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Charger SRT8
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Charger SXT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Dakota Crew
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Dakota Extended Cab
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Durango
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Durango Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Grand Caravan SE & C/V
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

2009 Grand Caravan SXT
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

2009 Journey SE
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Journey SXT/RT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Nitro SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Nitro SLT/RT
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash

2009 Ram 1500 Laramie
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

2009 Ram 1500 ST
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash

Customer cash and owner loyalty cash is also available on Ram 2500, Ram 3500 and Ram Chassis Cab models. These incentives are valid through July 1, 2009.