Auto Sales Have Not Soared As First Predicted

 

Auto Sales Have Not Soared As First Predicted

by Amy Lignor

 

When 2017 first began, it was stated by financial and industry “experts” that the auto realm would continue to have yet another amazing year. 2016 was a thrill ride when it came to auto sales, yet now that sales figures have been released, there are many people surprised that figures are far less than first expected. The only one fact that has remained is that everyone – from sea to shining sea – still seems to love cars. They all want the ‘best of the best’ sitting in their own driveways, even if they have no shot at actually paying for them.

Auto Sales Have Not Soared As First Predicted

When it comes to consumer debt, the Federal Reserve Bank of New York has stated that outstanding auto loans now total $1.16 trillion – their highest point in 18 years (this is an increase of $93 billion that occurred in 2016 alone.) That would make sense, considering that auto sales were huge last year. The problem comes in the form of delinquency rates. The number of people not paying back their auto loans has risen – with 3.8 percent of payments more than 90 days late, placing these loans in the “seriously delinquent” category.

 

According to Bloomberg, “U.S. drivers with credit scores of less than 620 borrowed $244 billion to buy cars in 2016, a tally not matched since 2006 and 2007 when the same strata of buyers rolled off with $254 billion in auto loans.”

 

It was suggested back in 2016, when auto sales increased by leaps and bounds that lenders might be allowing car buyers to borrow more than they can afford. Standards have been lowered and repayment times have even been stretched past the norm, which has allowed people without enough cash to invest in bigger trucks and SUVs that were far out of their budget ranges.

 

So…is all that why 2017 has not shown the “huge increase in sales” that the market originally predicted? Seems so.

 

The numbers clearly show that sales fell in January, following that record year for automakers. But that announcement did not completely stifle the belief that the auto industry would continue to rise. The industry could still witness that “boom” in 2017, especially seeing as that pickups and SUVs are being sold in 2017 more than passenger vehicles, proving that auto manufacturers can maintain their profits.

 

It is also a fact that car makers have gotten more cautious, making less “fleet sales” that include cars being sold to auto rental businesses, government facilities, and large organizations that supply cars for their upper management, etc. These sales are far less profitable for the automakers than selling to consumers, so they have not been making those sales as often as they used to.

 

Even with the latest figures, showing yet another fall in February, the one thing car makers do continue to benefit from is the wide accessibility of credit that comes with low interest rates. The latest sales figures break down this way:

 

Nissan: 3.7% (-1.8% expected)

Ford: -4% (-4.3% expected)

GM: 4.2% (2.5% expected)

Fiat Chrysler: -10% (-8.4% expected)

Honda: 2.3% (2.4% expected)

Toyota: -7.2% (-4.8% expected)

Subaru of America: 8.3%

BMW: -2.5%

 

There are a great many problems arising in the business world, mostly because of government changes and, perhaps, from having too many egos in one place that are not seeing the full picture. Consumer debt is stretched, and may soon be stretched to the breaking point. If that ‘break’ occurs, the predictions that 2017 was going to be another fantastic year for automakers, yet again, may just end up to be the worst prediction ever made.

 

Entertainment

Oscar Isaac and Christian Bale Co-Star in WWI Docudrama

  The Promise DVD Review by Kam Williams Oscar Isaac and Christian Bale Co-Star in WWI Docudrama It's Eastern Turkey in 1914, which is where we find druggist Mikael Boghosian (Oscar Isaac) plying his trade in his half-Armenian/half-Turkish village where Christians and Muslims get along swell. The ambitious, young apothecary would really … [Read More its Good for You...]

Books

Book of Black Heroes

  Book of Black Heroes Political Leaders Past and Present by Gil L. Robertson, IV Foreword by Myrlie Evers-Williams Just Us Books Paperback, $12.95 80 pages ISBN: 978-1-933491-21-9 Book Review by Kam Williams “The first African-American political leaders began to serve following the Civil War...Known as Reconstruction, this period … [Read More its Good for You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the … [Read More its Good for You...]

Real Estate

Real Estate: Refinancing Rates on the Rise in 2017

  Real Estate: Refinancing Rates on the Rise in 2017 by Amy Lignor   The term ‘meteoric rise’ usually applies to something fun. Think: A Hollywood actor who has been ‘discovered.’) Unfortunately, when it comes to this article, ‘meteoric rise’ is something that will not bring a smile to one’s face. To put it simply, if you wish to refinance … [Read More its Good for You...]

Lifestyle

Healthy Living: The Cellphone Guide

  Healthy Living: The Cellphone Guide by Amy Lignor   Much like the political realm, there will always be debates and disagreements when it comes to the technological realm—especially when it comes to your health versus the almighty cellphone. Now, it is a fact that communication in the 21st century literally brought about a … [Read More its Good for You...]

Outdoors

Choosing Binoculars for the Ultimate 2017 Hunt

  Choosing Binoculars for the Ultimate 2017 Hunt Any hunter will tell you the most important choices to make when going for that ultimate successful hunt comes from the little things. Yes, the guns, the location for the hunt, the clothing that’s best for the winter and/or summer hunt – all of these things are on the hunter’s ‘must-buy’ list. … [Read More its Good for You...]

Sports

Esports on a Meteoric Rise in 2017

  Esports on a Meteoric Rise in 2017 by Amy Lignor   Okay…we all know that football is America’s favorite sport. Or…is it? NASCAR has a wide following. People still love to go to the ballpark in the lazy summer days to watch a Yankee hit a homerun. There are those who love to practically melt in the summer watching the Williams’ … [Read More its Good for You...]

Business

Is Social Media Still Growing?

  Is Social Media Still Growing? by Amy Lignor   It was in 1999, Bill Gates wrote a book titled, “Business @ the Speed of Thought.” Within these pages, the man who became the computer world’s wizard made massively bold predictions that, at the time, sounded ridiculous and outrageous to those who read them. But when you look at how the … [Read More its Good for You...]

Travel

Vacation Locations: Knowledge is Fun Too!

  Vacation Locations: Knowledge is Fun Too! by Amy Lignor   Most children (and adults, too) will either roll their eyes or sigh when, while speaking about vacation locations, the word “learning” just happens to be mentioned. Yes, it is a fact that school trips take all of us during our younger years to everything from museums to … [Read More its Good for You...]