Tag Archives: 2012

Car Sales Increase Continues into February

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Last year saw the resurgence of the auto industry in records sales.  January continued this trend and it looks like that trend will not be stopping anytime soon.   J.D. Power and Associates have come out with a report stating that new vehicles sales in February are going to surpass them.  How much exactly?  Retail sales are projected to in at 857,400 unites.  That comes out to an increase of 5 percent from the previous year.  That’s also more than a million unit increase in the sales from just last month.

“Retail light-vehicle sales in February are strong, which makes us modestly optimistic about the growth of sales going forward,” said senior vice president of global automotive operations at J.D. Power and Associates, John Humphrey. “More so, we’re increasingly confident that the fundamentals are in place to continue to support an upbeat sector outlook for the coming year.”

J.D. Power and Associates also detailed that 72 month leases accounted for 23 percent of all the sales done in February.  That’s the highest level it’s been in five years, which is an increase of 19 percent from 2011.

 The news keeps coming in that the tide has finally turned for the better.  With all the auto companies posting positive sales in the previous year and January, it looks like the trend is definitely going to continue into February.  Now is the best time to take advantage of this increased demand.  Contact Special Finance Group at 212-239-7270 or visit us online for any questions.  Be sure to also like us and follow on Facebook and you’ll stay up to date on all the latest news and offers

Auto Lending in High Demand as Market Improves

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The economy really did a number on credit loans. According to an article on Autonews.com, just three years ago, during the height of our current economic recession, even someone who had a salary of $400,000 and a good credit score of more than 700 wouldn’t be able to walk out of a dealership with the financing for the car he wanted.

Michael Mosser is the general manager of Chevrolet and Cadillac stores in Ann Arbor, Mich. He added to the conversation, “The world is upside down compared to then. Today, somebody with a 500 credit score I can get approved and in a Malibu.”

Lenders were forced to cut back on extending credit when the collapse happened. This in turn was a driving factor for the reason why the major car companies, such as General Motors and Chrysler, saw sales that were the lowest they had seen in about 3 decades. It didn’t take long after that for both companies to file for bankruptcy.

As the economy improves however, so does the demand for cars. Due to this increase, bank lenders such as Bank of America and Capital One Financial Corp, are working to get car buyers approved fast and with great rates to keep up with the market. In the US, vehicle sales have risen 10 percent to 12.8 million last year. January turned out to be the one of the best sales month automakers have seen since the cash-for-clunkers program in 2009.

With lending seeing such an increase and banks doing everything they can to keep up with subprime borrowers, now is the best time to sign up for Special Finance Group’s program. Contact us today at 212-239-7270 for any questions. Make sure to follow on Facebook as well so you can stay up to date on all the latest news and offers.

Image: Stuart Miles / FreeDigitalPhotos.net

Lack of Used Cars Drives New Cars Sales

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CNBC has put out an analysis of the used car market. It’s findings did not bode well as the used market was hit hard by the collapse of 2008. Due to the economic downturn, many vehicle manufacturers cut their production on a large variety of makes and models to keep their doors open. While the economy is starting to come back to better times, car owners that have seen harder times due to the recession have been deciding to keep their cars rather than trading in for a new ridge.

How much exactly? Well, the amount of three and four year old cars for sale on the market is down by about 19 percent. That comes out to a total of around 5.7 million used cars that would’ve been on sale or available. Since this supply has taken such a hit, it’s no surprise to see that used car buyers are now looking to the new car market instead. Thankfully, it was a good winter for the auto companies. Even January sales showed a vast improvement over the previous year with about 13.5 million. Ford and Chrysler have already been putting out some good numbers for the month as well.

There’s definitely a high demand out there for vehicles and for the buyers with challenged credit. There is no better time to sign up for Special Finance Group’s Complete Finance Solution than right now. You can view the program here and go to the main website to see just what SFG can do for you and your dealership. Don’t forget to also follow them on Facebook.

Image: Stuart Miles / FreeDigitalPhotos.net

Interest Rates Low Into the New Year

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Talk of the economy of almost completely inescapable these days.  Things seem to be taking a turn for the better however, with the auto industry having very positive news about their sales upswing in 2011.  Unemployment numbers just came out the other day, showing at 8.3%, the lowest in three years. Money is starting to get back in people’s pockets and for the person looking to purchase a vehicle the lenders are expected to give some great rates in 2012.

Interest rates have seen a steep drop of late.  For example, a 60 month- loan given in November of 2008 to someone with excellent credit would be looking at paying an annual percentage rate of 6.54 percent.  That same loan being made today would be at 3.73 percent.

Melinda Zabritski, the director of automotive credit for Experian, has an explanation.  She believes that consumers are no longer making impulse buys but are rather being more cautious with their money and planning out a car purchase in advance.
That’s not to say that just because you have bad credit means that you’ll get guaranteed an excellent rate.  For subprime borrowers (people with credit scores of 619 and below) they can expect to have to provide a 20 percent down payment.  Due to this, Experian’s Zabritski explains that these customers should be looking more at used cars where there are better loan opportunities.  According to Experian’s data, the used car may have a higher interest rate but this is offset by the lower cost of the vehicle along with a better chance of being approved.

There are some basics people need to know before purchasing a car.  These range from setting up a budget, knowing your credit score by doing a credit check, and being prepared to make a larger down payment.  The signs are there with the economy with the recent turn for the better.  People with low credit are still having a tough time with auto loans, but it’s starting to look more optimistic.

2012 is going to be the year to get people into the car they want.  This high demand from consumers with challenged credit means that there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution.  You can learn more about the program here and go to http://www.specialfinancegroup.com to get more information.  Don’t forget to like them on Facebook to stay up to date on all the latest news in the industry.