Archive for the ‘Leasing’ Category
Young buyers finding it tough to make car and student loan payments.
by Joseph Szczesny on Feb.13, 2019
Auto loan delinquencies are on the rise, and are higher than during the Great Recession.
The Federal Reserve Bank of New York reports that more than 7 million Americans are delinquent on auto loans, even more than during the Great Recession.
The figures, which were part of New York Fed’s quarterly report on household credit, suggest that many consumers are having a difficult paying their bills. Rising prices for both new and used vehicles also are factor, economists said.
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“Although rising overall delinquency rates remain below 2010 peak levels, there were over 7 million Americans with auto loans that were 90 or more days delinquent at the end of 2018. That is more than a million more troubled borrowers than there had been at the end of 2010 when the overall delinquency rates were at their worst since auto loans are now more prevalent. (more…)
Tags: Federal Reserve warns about auto loan delinquencies, TheDetroitBureau.com., auto loan news, auto news, automotive loans, car loan delinquency, joseph szczesny, loan delinquency rising, thedetroitbureau, three months behind on car payments, young buyers behind on car payments
Posted in Automakers, Business, Executives, Financing, Leasing, Markets, Personalities, Politicians, Sales, Sales, Trends, U.S./North America | No Comments »
Edmunds predicts rates will continue upward.
by Michael Strong on Jan.03, 2019
Rising interest rates and falling incentives are expected to combine to drive down new vehicle sales in 2019.
The Federal Reserve raised interest rates throughout 2018 and, as observers expect to confirm today, new vehicle sales rose year-over-year. However, experts predict that will be a one-time occurrence.
There was a dip in automotive interest rates at the end of the year to help with holiday sales. New vehicle rates averaged 5.9% in December, according to Edmunds.com, after averaging 6% in November, which helped drive a strong end to the year.
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However, that average was largely driven by banks and other lenders rewarding buyers with excellent credit special low-interest loans rather than an overall shift downward. (more…)
Tags: Edmunds interest rates, Edmunds.com predicts higher rates, TheDetroitBureau.com., auto financing, auto loan interest rates, auto news, auto sales, car sales, michael strong, new vehicle sales 2019, rising auto interest rates, thedetroitbureau
Posted in Automakers, Automobiles, Business, Financing, Leasing, Markets, Sales, Sales, Trends, U.S./North America | Comments Off
Company as Oracle founder Ellison to board of directors.
by Michael Strong on Dec.28, 2018
Tesla Inc. established a leasing operation in China: another step toward growing sales in China.
Tesla Inc. is growing internationally while simultaneously resolving its battle with federal regulators in the United States.
The California-based electric-vehicle maker registered a wholly owned financial leasing company in China, with registered capital of $30 million, according to China’s National Enterprise Information Publicity System.
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The move to open a leasing operation in China falls in line with its plans to begin selling and building its cars in China. The company is seeking contractors to build its $2 billion gigafactory near Shanghai. The company has been moving quickly to establish a hold in China since the government eased local ownership laws for foreign EV makers. (more…)
Tags: Tesla China operations, Tesla SEC deal, Tesla adds Ellison to board, Tesla adds two independent directors, Tesla business in China, Tesla sets up leasing company in China, TheDetroitBureau.com., auto news, michael strong, tesla news, thedetroitbureau
Posted in Asia Pacific, Automakers, Automobiles, Business, China, EVs, Executives, Leasing, Markets, Personalities, Sales, Sales, Tesla, U.S./North America | Comments Off
Rising interest rates hastening trend.
by Michael Strong on Nov.09, 2018
Used car shoppers are finding higher prices than ever for vehicles.
New vehicle prices have reached all-time highs this year and now used vehicles, the haven for car buyers looking for a deal, have now joined new cars, setting a new pricing benchmark.
The average price of a used vehicle is now $20,084, the highest since 2005 and a 3.5% increase year over year, Edmunds notes, adding that increase is rising as it jumped to 5% in Q3. American preferences for expensive new trucks and utility vehicles pushed new vehicle prices over the $36,000 mark, according to Cox Automotive.
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In short, buyers are paying more for a vehicle and with interest rates rising, the options for cutting down that monthly payment are getting tougher. (more…)
Tags: TheDetroitBureau.com., auto news, michael strong, new vehicle prices, rising interest rates, shopping to monthly payment, thedetroitbureau, used vehicle prices rising, used vehicle sales, vehicle news
Posted in Automakers, Automobiles, Business, Financing, Leasing, Markets, Sales, Sales, Trends, U.S./North America | Comments Off
No word on what will replace Book by Cadillac.
by Joseph Szczesny on Nov.05, 2018
Book by Cadillac, the brand's new subscription service, has been suspended until next year.
General Motors’ Cadillac division is hitting pause on its vehicle subscription service, Book by Cadillac, then it will be relaunched early next year.
Andrew Lipman, a Cadillac spokesman, confirmed the plans, following a Wall Street Journal report that Cadillac was planning kill the program.
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“Book by Cadillac is not canceled,” Lipman said. “We are stopping it for a short period of time to then relaunch it based off the learning we have made in early Q1. We are hitting the pause button and we will be back.” Lipman told Automotive News. Part of the problem Cadillac’s subscription program was that at $1,800 per month it was too pricey. (more…)
Tags: Book by Cadillac, Cadillac halts subscription, Cadillac subscription plan, Cadillac suspends Book, TheDetroitBureau.com., auto news, cadillac news, joseph szczesny, subscription services, thedetroitbureau
Posted in Automakers, Business, Cadillac, GM, Leasing, Markets, Sales, Sales, Trends, U.S./North America | Comments Off
More content, higher interest rates driving increase.
by Michael Strong on Nov.01, 2018
Ford's new SUV sales are on the rise, as is its average transaction price by $1,400 per vehicle.
Despite predictions of an overall decline, U.S. auto sales rose slightly in October, led by companies with shiny new sport-utilities and crossovers to offer buyers.
However, those more desirable vehicles combined with rising interest rates are resulting in new vehicle prices that are on the rise. This is likely, at least according to one automaker, put a dent in sales for the remainder of the year.
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During its sales call, executives at Ford Motor Co. warned sales numbers will continue to fall in 2018, in part because of the rising interest rates pushing up prices. (more…)
Tags: TheDetroitBureau.com., auto news, car prices continue rising, interest rates driving price increase, michael strong, new car pricing, new vehicle prices rise, october auto sales, rising interest rates, thedetroitbureau
Posted in Automakers, Automobiles, Business, Crossovers/CUVs, Executives, Financing, Leasing, Markets, Personalities, SUVs, Sales, Sales, Trends, U.S./North America | Comments Off
Company claims it could raise resale values.
by Michael Strong on Oct.15, 2018
GM's new extended warranty is accepted at all GM dealers across the U.S.
The difference between buying one new vehicle or another can often come down to the tiniest of things, but General Motors is now offering a big thing that it hopes will make a big difference: an extended bumper-to-bumper warranty.
The company is offering what it is calling the first ever true extended bumper-to-bumper warranty that covers Chevrolet and GMC products for five years or 60,000 miles, whichever comes first, while Cadillac and Buick owners can get a six-year or 75,000-mile warranty.
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“One of the best things about buying a new vehicle is the peace of mind that comes with the warranty,” said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection. (more…)
Tags: GM bumper-to-bumper warranty, GM extended warranty, GM offers new extended warranty, GM selling new protection, GM vehicles, General Motors warranty, TheDetroitBureau.com., auto news, gm news, michael strong, thedetroitbureau
Posted in Automakers, Automobiles, Buick, Business, Cadillac, Chevrolet, Financing, GM, GMC, Leasing, Markets, Quality and Reliability, Sales, Sales, Trends, U.S./North America | 2 Comments »
Despite brisk pace, total will fall short over August numbers.
by Joseph Szczesny on Sep.27, 2018
Despite a strong daily sales rate, U.S. new vehicle sales in September will fall short of August's results.
The total number of vehicles sold in September is likely to drop, according estimates from Edmunds and Cox Automotive.
Total sales volume in September, even though running ahead of August’s pace, is forecast to decline nearly 60,000 units from last month and nearly 100,000 units compared to September 2017, Cox said.
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“Year-over-year comparisons are challenging this September, as the industry saw record sales levels last year,” noted Charlie Chesbrough, senior economist at Cox Automotive. (more…)
Tags: 17M new vehicle SAAR, Fed interest rate hike, September new car sales, TheDetroitBureau.com., U.S. new car sales, auto news, auto sales, joseph szczesny, new vehicle sales, new vehicle sales in United States, thedetroitbureau
Posted in Automakers, Automobiles, Business, Leasing, Markets, Monthly Results, Sales, Trends, U.S./North America | Comments Off
Rising interest rates pushing buyers toward leases.
by Michael Strong on Sep.14, 2018
Zero-percent financing deals are increasingly difficult to find these days, pushing some into leasing.
Car shoppers are always looking for a deal, and often they’re excited by the prospect of zero percent financing; however, those deals are getting tougher and tougher to find.
The percentage of sales with zero percent finance deals has been cut in half in the last two years — dropping from 14.6% of transactions in August of 2016, to 10.4% last August to just 7.4% this August, according to Edmunds.
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This drop during the last three Augusts sparks interest because zero percent financing deals usually abound in August and September.
“August truly represents the month that we would have expected to see a turnaround in this trend if one was imminent,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “Moving forward, shoppers will likely need to do a bit more digging to find other ways to save on a new vehicle because it looks like zero percent finance deals are going the way of the dodo.”
(more…)
Tags: Edmunds zero-percent financing, TheDetroitBureau.com., U.S. News best deals, auto news, best September deals, leasing new vehicles, michael strong, thedetroitbureau, zero-percent deals waning, zero-percent financing
Posted in Automakers, Automobiles, Business, Dodge, Events, Financing, Hyundai, Jaguar, Leasing, Markets, Mazda, Mercedes, Sales, Sales, Sports Cars, Subaru, Trends, U.S./North America | Comments Off
Mercedes-Benz boasts highest average lease price.
by Michael Strong on Aug.17, 2018
Leasing rates rose in the second quarter of 2018 with SUVs accounting for the largest portion of those leases.
Though auto sales were down overall in the second quarter of 2018, folks leasing instead of buying new vehicles were doing their level best to keep sales numbers high despite lower incentives, according to a new study.
Swapalease.com notes the average months remaining in leases rose during the second quarter to 28.8 months compared with 25.1 months in the first quarter. The rise is an indication that people were looking to get out of their leases early in search of a better vehicle or deal.
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Not only was that measure up, the average miles remaining fell from 23,115 to 22,617 left in their contract, which is only a slight decrease. The ratio of months remaining to miles remaining, according to the website, is an indicator that people are driving more. Those looking to get out leases early could have been creeping up on their contract limit, forcing them to make a move earlier. (more…)
Tags: Q2 auto leasing report, TheDetroitBureau.com., auto leases, auto news, auto sales, michael strong, new vehicle sales, swapalease.com, thedetroitbureau, u.s. car sales
Posted in Automakers, Automobiles, Financing, Leasing, Luxury Vehicles, Markets, Pickups, SUVs, Sales, Sports Cars, Trends, U.S./North America | Comments Off
