Auto Loans Expected Up This Year
Various conditions, though, prevent a sunny forecast.
An auto loan delinquencies increase in the fourth quarter is one check on expected origination growth this year.
Pixabay/Lalmch
One forecaster expects what it terms modest automotive loan growth this year, though it acknowledges that could be compromised as the industry faces challenges from multiple directions.
The TransUnion forecast expects about 3% growth in auto loan originations due to a similar expected increase in new light-vehicle sales this year.
The credit-reporting agency also observed consumer credit stabilization over the last two quarters of 2024, as originations grew year-over-year in automotive and other consumer lending segments. It also noted balance increases more in keeping with prepandemic rates.
“In Q4 2024, we saw several signals inching towards a return to more typical patterns within the consumer credit market,” said Vice President and Head of Research Michele Raneri in a press release on the forecast. “We will be looking for additional signs of improved performance in these markets moving forward.”
TransUnion checks the forecast, though, by pointing out that the auto industry faces federal policy shifts, in addition to continued high interest rates, inflation above 2%, and still-limited used-vehicle inventory.
It said loan delinquencies increased in both the automotive and mortgage segments in the fourth quarter.
LEARN MORE: Under-Water Auto Loans on the Rise
Originally posted on Auto Dealer Today
More Industry
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →