New car buyers, shunned by lenders just four years ago, now are benefiting from historically low interest rates and more-available credit and auto dealers are benefiting as well.
Find out what benefits low financing rates have produced.
General Motors and Auto Nation, respectively the top-selling automaker and dealership group in the U.S., are among companies pointing to ample financing for new car and truck purchases pushing sales comfortably past 15 million this year, the highest since 2007.
“We have the best financing available for our customers ever,” Mike Jackson, the chief executive officer of Fort Lauderdale, Florida-based AutoNation, told a J.D. Power & Associates conference this month in Orlando, Florida. “I go back to ’08 and ’09, and I couldn’t get the Lord Above financed.”
“No industry has benefited more from the unfreezing of the credit markets than new and used vehicles,” Tom Webb, chief economist of Manheim Consulting, said this month in a report. “Although the immediate goal of Federal Reserve actions was to lower long-term rates and support the mortgage market, it was auto-financing markets that enjoyed the first boosts.”
“Credit availability is a big part of supporting the growth of the auto industry” Joe Hinrichs, Ford’s president of the Americas, told reporters on Feb. 21 at the company’s engine plant near Cleveland. “Dealers are feeling more optimistic about leasing and credit availability for consumers””