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Friday, September 02, 2016

More Americans Behind on Car Payments as Sales Near Peak

Auto sales, though still flirting with the possibility of another annual record, have begun to level off as consumers satisfy much of the pent-up demand that swelled during the recession. Another sign the market may be reaching its peak: more Americans are falling behind on their car payments.

As U.S. sales growth slows in 2016, summer demand is falling short of last year’s blockbuster numbers. Industry-wide sales ticked 0.7% higher in July compared to the same month a year ago, according to Autodata. In July 2015, automakers reported a 5.3% increase in deliveries. General Motors (GM), Ford (F) and their fellow manufacturers will release August sales results on Thursday.

The slowing pace of sales has come at a time when loan delinquencies are on the rise in the $1 trillion auto-loan market. For subprime auto loans, delinquencies extending beyond 60 days jumped 17% last month, Fitch Ratings said in a recent reportOpens a New Window.. The upswing is more pronounced for prime delinquencies, which were up 21% versus July 2015.

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5 comments:

Anonymous said...

I see big deals coming!

Anonymous said...

My last new car I purchased was in 2003. I still have it. Haven't been able to afford a new car since the great recession started in 2008. The prices are totally outrageous and unaffordable. I have been forced to but late model used cars and just keep them running. If it comes down to putting dinner on the table and a new car payment, I take dinner! Some of the new cars are as much as a new house! Car prices were much lower back in 2003 and is was making twice the income! Foolish to buy a new car or truck in today's market!

Anonymous said...

I haven't had a new car since 1973 and have purchased eight used cars and trucks since. There's no point to buying new when a late model used vehicle is 2/3 the price and all of the bugs have been worked out of it.

Anonymous said...

10:23 you think you can buy a house for $25,000?

Anonymous said...

Sure! Auction, foreclosure, some boarded up POS in Fruitland. Just look around.