Jump to content
Create New...
  • William Maley
    William Maley

    Rise In Automotive Sales Has Some Analysts Worried

    William Maley

    Staff Writer - CheersandGears.com

    October 15, 2013

    On the face of it, sales for new vehicles haven't been better. Total sales for new vehicles could reach 15.5 million this year and some analysts believe that 2014 will see total sales reach 16 million vehicles. But with increase in sales, warning signs are appearing in automotive loans and leases which could put an end to the increases.

    Automotive News that the average loan length has gone up to 65 months (about five and a half years). While the longer length means a lower payment, it also means that many consumers will still be in the process of paying their old vehicle off when they decide to buy a new one.

    Also seeing a rise is the amount of subprime loans. During the second-quarter of this year, subprime loans accounted for 27.4 percent of loans made. That's an increase of two percent when compared to the same time last year. Now the good news is that delinquent loans (loans that three months or more overdue) are low and haven't increased with the number of subprime loans.

    Analysts worry that the gains gotten by 'easy credit' could easily tumble if interest rates are raised. That could lead to slower sales, increased inventory, and the piling on of incentives.

    Source: Automotive News (Subscription Required)

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

    User Feedback

    Recommended Comments

    I understand why analysts would (and should) be concerned with a high number of subprime loans. There is one thing they are not counting on: everyone needs transportation and public transportation thorughout most of the USA is not very good. (Compact cities do not count.) If there is another nasty recession where jobs are really scarce, expect all other expenses to be cut back except for car loan payments. There might be some more delinquent loans and even a few more repossessions, but it may not be that bad.

    Link to comment
    Share on other sites

    There are a lot more sub-prime buyers who've had problems over the last 7 years who have stabilized over the more recent term. These weren't particularly risky people, but just got caught in the economic downturn and have some credit blemishes for it.

    Link to comment
    Share on other sites

    they figure the risk of someone defaulting on a few hundred bucks a month is a lot less than that crazy home loan they would have been given 9 years ago.

    they want to keep sales up in the car market too, and not depress it permanently. I think it may be one of those deals where if you can breathe you will be able to get some kind of credit for a car loan. Maybe just not new all the time.

    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • About food and the "boot country," there have been some changes due to globalization.  By that, I mean much more interest in fast food, candy bars, and bad snacking.  In the last 20 or so years that I've been coming here almost annually, I can see that the Big Mac attack (translation:  bigger butts) has been more pronounced, and "growing."   The people, primarily younger women, used to be very thin, and now I'm seeing some of the bigger rumps, and jeans to accommodate them, that are part and parcel of Americana. I love me a Big Mac meal about once a month, wherever I may be, but not much more than that.
    • What matters is on the inside, right?  Luckily, the Corvette already sports a sexy exterior, but for 2026, Chevrolet updated the interior to address some of the common complaints in the latest iteration of their legendary sports car. The biggest news is that the wall of buttons between the driver and passenger has been moved to a more conventional location under the screen, though not all buttons make the jump.  Some functions such as heated/cooled seats are now controlled from the central touch screen. And screens they are aplenty! The updated infotainment screen increases in size to 12.7-inches diagonal, a larger 14-inch diagonal driver information cluster, and a new 6.6-inch diagonal auxiliary display to the left of the steering wheel.  The drive mode selector has been relocated in line with the gear selector which opens up spaces for a new wireless phone charging pad, complete with a cover to keep the phone in place.  The new left-side auxiliary screen display gives dedicated access to trip information or performance management. All three screens features sharper and more vivid graphics. The animations have been made smoother and cleaner. Drivers can select their preferred layout or allow the system to adjust automatically based on drive mode. The Performance Data Recorder's user interface has been completely redesigned to take advantage of the new, larger screens. For 2026, four new colors are available on all models: Sky Cool and Medium Ash Gray with Habanero accents: Monochrome cool grays with unexpected pops of bright Habanero Santorini Blue: Vivid shade of blue that is both vibrant and electric Very Dark Atmosphere: Rich chocolate brown paired with Jet Black and Natural Tan accents Ultimate Suede: Jet Black suede interior customizable through Adrenaline Red, Santorini Blue, and Competition Yellow accent stitch colors and matching seatbelts Customers can even spec a mixed seating option in Asymmetrical Adrenaline Red, with a racing-inspired Adrenaline Red Competition driver’s seat and a Jet Black GT2 passenger seat. The Ultimate Suede interior brings sueded microfiber to nearly all interior surfaces. Other new changes include: A new, available electrochromic roof, which allows customers to change the tint level of their targa roof glass at the press of a button – selecting between full, medium, and low tint options. The button to activate Charge+, which enables E-Ray drivers to replenish battery life more quickly or sustain battery charge for a track session, has been relocated to the steering wheel. Located just below the Z Mode button, Charge+ now has a more prominent location for ease of use. Two new exterior color options are available for all models: Roswell Green Metallic and Blade Silver Metallic.   View full article
    • I so want to own an EV if I own another car.
    • They are well reviewed worldwide with a great reputation. I really would prefer to not buy a car for awhile. I am hoping to leave the country by then, and live in a city with great mass transit. I am hoping to own no cars in 2029. I have seen one or two on the road in the wild....in Detroit with manufacturers plates. Yes.  
  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search