The Good (per the AP):
Americans shrugged off fewer discounts and a scary stock market plunge last month, snapping up new automobiles and delivering another month of higher sales for carmakers.The industry's double-digit jump in sales shows that consumers feel the economy is healthy enough for them to buy a new car or truck. It's easier to get a car loan and gas prices are holding steady. Those factors helped ease any jitters about the 8 percent drop in the stock market last month.
"Clearly we are in a recovery," said Jeff Schuster, executive director of global forecasting for J.D. Power.
The long-term perspective (we are still running ~4-5mm units per year below previous levels):
Source: Auto Blog
If we have to borrow money to buy a car, we aren't in recovery; we are in denial.
ReplyDelete7.13 months are Banks'share during the 48 months car payments..
ReplyDelete7.13/48 = 15% Banks' profit margin.. as well as -credit cards - margins..!!