Good news is emerging on the auto-financing end of things, Automotive News recently reported, as households have quit spending less and saving more. Instead, they are spending more and borrowing more.
This spending and borrowing includes $105 billion in auto loan and lease originations, the highest amount in almost 10 years, according to the Federal Reserve Bank of New York, which was quoted in the Automotive News report. That marks 14 quarterly increases in a row.
Auto finance isn’t the only beneficiary of freer spending. Balances were also up for credit cards and student loans. Home equity lines of credit, which before the Great Recession were often used as a way to finance a new sedan or luxury crossover, are still an exception to the rule. The Fed said those volumes are still down.
You can read the Automotive News story here.
Here’s a topic to add to your arsenal of conversation starters when you’re meeting with local Chamber of Commerce reps, other business people and elected officials in your area: Your dealership and your industry’s positive economic benefit to your community.
A “Get the Facts” initiative from the National Automobile Dealers Association says America’s new-car and -truck dealers are the economic backbone of Main Street—providing price competition and well-paying local jobs and building strong communities.
“Dealers provide more than 1 million jobs nationwide in sales, servicing and management … that average $53,000 per year plus benefits and with room for advancement,” NADA says. “Dealers drive job creation in other businesses as well—from local broadcasting to construction to finance. Adding these jobs and related fields, local dealers are responsible for another million jobs nationwide.”
Additionally, NADA says, “Dealers also generate more than 15 percent of state and local taxes nationwide … and pay billions in property, sales and income taxes that fund local schools, police and fire departments.”
NADA’s “Get The Facts” initiative is designed to inform policymakers, opinion leaders and the media about the numerous benefits of the dealer franchise network. Read more about this NADA initiative here.