With automakers selling cars and trucks in the US at an almost unprecedented pace, the consumers must be financing those rides at a similar pace and the latest figures show this to be true.
According to Equifax Inc., through the first half of the year, the overall outstanding balances on auto loans and leases have reached $1.021 trillion, with a year-over-year growth of 10.5 percent. Besides that, the number of outstanding accounts has also risen from the same period of last year by 8 percent to 73.7 million. “Strong sales numbers in both the new-car and used-car markets, coupled with the availability of quality financing for consumers are a few of the main reasons the industry has reached the one trillion dollar mark,” comments Dennis Carlson, deputy chief economist at Equifax. “It clearly reflects that the improving economy has provided the impetus for consumers to replace their aging vehicles and begin to satisfy their pent-up auto demand.” Auto deliveries through June have gone up by 4.4 percent to a total of 8.5 million vehicles and the strong demand in July also made way for an equal 4.5 percent increase for a total so far of 10 million autos – with figures from AutoData Corp. showing that for the same period last year sales only reached 9.6 million units.
The booming sales are in the pickup and SUV segments across the mass market and in the luxury sector. Premium autos have jumped 11.5 percent, with TrueCar Inc. adding the trend has been upwards over the past three years – it was up 10.2 percent back in 2012.