Credit Union Leasing of America (CULA)’s Post

In today's automotive sales space, something’s got to give, as high vehicle prices, interest rates and extended loan lengths create an unsustainable marketplace and mounting concerns for consumers and credit unions. Finding sensible solutions to navigate this new common ground is a rare opportunity, as I explain in my latest article at Credit Union Times, check it out: https://lnkd.in/gpZJBqhi #CreditUnions #VehicleLeasing #cardealers #LendingSolutions #autoindustry #AutoLending #AutoFinance #automotive #cars Credit Union Leasing of America (CULA)

car buyers Why the Fed’s rate cut won’t immediately help car buyers or sales Auto loan rates remain near decades-high levels of more than 9.61% for a new vehicle and nearly 14% for a used car or truck Key Points ·        The Federal Reserve’s decision to cut interest rates for the first time in more than four years is expected to boost new vehicle sales, but not as quickly or by as much as some may expect. ·        Auto loan rates remain near decades-high levels of more than 9.61% for a new vehicle and nearly 14% for a used car or truck, according to Cox Automotive. ·        Auto loan changes can be delayed because they’re really a function of longer-term bond yields that are based on loan performances.

Auto loan rates for new and used vehicle purchases fell in Q1 2024 to 6.73% and 11.91%, respectively, according to Experian. Despite persistent inflation, you could qualify for a lower rate based on your credit scores. Excellent credit may secure a rate under 5% for a new car loan, while scores below 500 might face rates of 20% or higher. Understand how your credit scores impact your auto loan rate and explore how to get the best rate for your situation. #AutoLoans #InterestRates #CreditScores #CarBuying #FinancialTips https://lnkd.in/gx3ZFXc8).

Car loan defaults are on the increase in USA, so far in 2024 defaults are at 3.06%, the highest since 2009. Delinquencies are also on the rise. Lenders are tightening their lending criteria with average interest rates on those loans approaching 10%. Average price of a new car in the US is $48k However USA is still on track to sell 15.5m new cars in 2024, down slightly from 15.6m new car sales in 2023. Expectations were that they would sell 16m new cars this year. In the UK new car registrations for July YTD are up 5.5% at 1.15m. This increase is down to a rise in fleet purchases. New car registrations by private individuals were down 11.9% YTD. Indications that potential customers are continuing to feel the pinch and are perhaps waiting for lower interest rates before committing to larger purchases. Why the Ford Puma photo?  It was the top selling new car model in the UK in July.

Great insights from the always on-point Car Dealership Guy. As the credit crunch tightens, it'll be interesting to see the ripple effects—more people holding onto cars longer, putting more miles on said cars... much like homeowners with low mortgage rates. The challenge for dealers? Finding new ways to incentivize buyers while also maintaining profitability. Seems like a great opportunity to invest in diversifying revenue streams and other creative solutions 👀

CCC Crash Report outlines vehicle claim trends The average interest rate on new car loans rose 7.1% in July 2024, the highest since the Great Recession. Used car loan rates reached 11.4%, significantly higher than in recent years. This increase in interest rates has led to higher monthly payments for car buyers, with nearly 18% of new car loans now having a monthly payment of $1,000 or more. The rising cost of car loans has contributed to a surge in auto loan debt, which now exceeds $1.6 trillion. Auto loans now make up 9.1% of total household debt, indicating that many consumers are relying on credit to purchase vehicles. Despite a slight increase in the supply of new vehicles, prices remain elevated due to ongoing economic challenges and inflation. While the frequency of auto collision claims has been slowly declining, the number of total loss vehicles has increased. This is primarily due to the decrease in used car values and the aging of the vehicle pool. As a result, more vehicles are being totaled rather than repaired, which can impact shop capacity and cycle times. Read more: https://lnkd.in/ewyApY2g #autoloans #carloans #interest rates #newcars #usedcars #inflation #economicchallenges #autoindustry #automotive #totalloss #collisionclaims

[NEWS] Auto credit crunch hits car buyers hard: Auto loan access shrank again in Aug. for five straight months of decline. Why? Delinquencies are up, and many auto lenders are tightening their criteria to avoid defaults— Obviously, making it tougher for many Americans to secure a car. But it goes deeper… Cars are key for overall financial well-being. Car owners are twice as likely to have a job—and four times more likely to keep it. On the bright side – new car prices have been falling MoM for nearly a year. And incentives reached their highest level since 2021. Looking ahead: Dealers are eager to clear out 2024 models and make way for 2025s. And with credit access tightening, more creative incentives are likely on the way. Read today’s top automotive stories, presented by Edmunds: https://lnkd.in/gm24PVsw (Data source: Cox Automotive)

What a great time for car dealers to target those with no debt. One of the first things people do after their bankruptcy chapter 7 or 13 is discharged is by a newer car! #cardealers #bkcampaigns

Lenders are forced to tighten up otherwise this next wave could far exceed the losses experienced in the last credit crunch. Have to think with inflated vehicle values the average severity will be exponentially higher than prior years. While we need relief and a good portion of the market is underserved, the alternative could be a mass exodus of the smaller institutions exiting the market due to the inability to sustain losses.

Average monthly car loan payment hits a record $739 in Q4 2023: Filed under: Car Buying Continue reading Average monthly car loan payment hits a record $739 in Q4 2023 Average monthly car loan payment hits a record $739 in Q4 2023 originally appeared on Autoblog on Mon, 8 Jan 2024 12:37:00 EST. Please see our terms for use of feeds. Permalink |  Email this |  Comments #car #cars #awesome