Americans headed to auto finance companies for car loans during September in high numbers last month.
During September, the automotive industry reached its best sales month since March 2008 with sales of cars and light trucks coming in at an annualized rate of 14.9 million, according to Autodata.
By year’s end, the sales pace in the United States is expected to increase 10 percent for the third straight year. According to Diane Swonk, chief economist with Mesirow Financial in Chicago, it is only going to get better. The housing market is still showing a slow recovery, but once it gets going again and consumers see positive equity on their homes, car sales will increase back to pre-recession levels. The annualized rate averaged 16.8 million vehicles in the United States from 2000 to 2007.
“The auto recovery is still not anywhere near what anyone would expect, given the number of new drivers and the level of pent-up demand,” Swonk told the Buffalo News. “But it’s a start, and not all sectors have that. There will be a big difference when people’s largest asset – their home – is moving up in value.”
Toyota beat out Bloomberg expert forecasts of a 36 percent gain, with a 42 percent increase on a year-over-year comparison during September. General Motors deliveries increased 1.5 percent, with its Chrysler brand sales increasing 12 percent.
via Auto Finance News.