Tag Archives: economy

Be Ready For an Auto Loan to Avoid Delinquency

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ID-100111229There are some things that no one ever wants to see a rise in. Experian is reporting that the rate of auto loan delinquency and repossession is going up. This is due to the first quarter seeing an increase in subprime loans.

The increase is across the board. 60 days of delinquency rose 12 percent while 30 days increased 1 percent. The numbers certainly are troubling compared to the recent reports showing those same stats slowing and lowering as the economy comes back.

This has many meanings behind it, not all of them dire. The economy has been a slow slog back to being the best for everyone. It’s come back strong enough to allow people to enter back into the subprime market. That would be an easy explanation for why delinquencies could be up. More people in the market.

What it really says to me is that people are wanting and/or needing to get a car again and may be making the leap too soon or not evaluating their finances properly before coming into the dealership. We’ve posted plenty of aids to make sure that when you get financing for a vehicle that it won’t become a burden that may lead people to missing out on payments.

A large part of buying a car is more than just finding the right vehicle. It’s also about ensuring the vehicle you need is going to work with your finances. Read up and prepare so you’re not caught off guard.

Bayside Chrysler Jeep Dodge is here to make sure you’re ready for financing for the vehicle you need.  We work every day with people that have poor credit situations and help them get the loan they need that suits their life-style.  We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.

Increase of Auto Loans Tied to Employment

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ID-100144096A recent study done by loans.org has pleasant news for the auto industry.

The website ran a study that combined both employments records from the Bureau of Labor Statistics and the Quarterly Report on Household Debt from the Federal Reserve. They looked for a correlation between auto loan debt and employment rate. Here’s what they found: between the third quarter of 2009 and the first quarter of 2013, auto loan borrowing rose as unemployment went down.

I can’t say I’m too surprised by that finding. Less people unemployed means more people have income. More income means that people are going to buy more things. That’s not a terribly conclusion to come to without doing a lick of research. Still, it’s nice to have numbers to prove something that should most definitely be true.

Another thing to note about the correlation between employment and auto loans is that there could be a number of people that were on long-term unemployment. If the people in question were subjected to those harsh conditions, they may have had to stretch to make their lively hoods work. That means ignoring the need to purchase a new car and relay on a broken down model frankenstein-ed to survive as long as possible. Now that they have reliable income again, it’s time to replace such a vehicle.

The economy has been shown to be improving and families have found themselves needing financing to replace aging vehicles. Thankfully as the market has bounced back along with the buyers, so have the auto loans. They are easier to obtain today than ever. Business is booming for the industry.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

What’s Keeping Used Vehicle Sales so High?

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We’ve written about in the past about how the used market has seen a major uptick in late of sales. A major factor for the New York area is because of the impact of Superstorm Sandy. When the hurricane came through and wrecked havoc on the city, it hurt many car owners who found themselves the morning after without their vehicle and were forced back into the market. Nationally, there are even more factors at play. For example, one is that people have reached the end of their vehicles life and no amount of repair and wishing is going to keep it on the road. It’s time for most drivers to get into the dealerships.

Tom Webb is an economist at Manheim and he took at look at used retail sales. He found that in the first quarter of 2013, used-vehicle sales were 12 percent higher year-over-year while most other industries are slowing down. He believes that a big reason is because how available financing has been for vehicles.

“On any given day,” Webb says, “there are literally hundreds of thousands of vehicles with owners who would like to trade up to get something a little bit better if they could do so with an affordable monthly payment. Given the availability of retail financing, a natural changeover of those vehicles over time will occur.”

What I find interesting is that numerous blogs and other speakers have, at lengths, informed me that the recent surge of the market has been due to the age of the vehicle, as I mentioned earlier. While certainly a part of it, Webb sees things differently. He believes that people coming in wanting to trade-up being the biggest reason why the used-vehicle sales are staying as high as they are.

Other markets are in flux at the moment because of the recent rise in payroll taxes and fluctuations in gas prices. Yet while these spending segments dip and slump, used-vehicles are seemingly impervious. Webb even says so himself, “To a certain extent, the used-vehicle market has been impervious to these factors in terms of retail sales activity.

The point of Webb’s study was to show that used-vehicle sales will hit an all-time high before 2015. What I took away was that he identified some great reasons why vehicle sales have maintained a positive upswing in the face of major economic issues impacting consumers. Financing has been made much easier to obtain and it definitely looks to be helping.

If you’re in the market for a used or new vehicle and need to look into financing, that’s where Bayside Chrysler Jeep Dodge comes in. We offer the best customer service to work with you to help you get into the car you need. We love to say yes, so contact us today and let’s get started in making sure you drive away satisfied with your purchase. Make sure you like us on Facebook and follow us on Twitter for more financial tips and monthly service offers.

Image courtesy of nongpimmy / FreeDigitalPhotos.net