F&I and Showroom, January 2016
www fi magazine com 16 AUTO FINANCE January 2016 F I and Showroom W When prices increase consumers find ways to make the cost more palatable When prices soared in years past consumers passed on the bells and whistles to keep their payments affordable Thats not the case today In the third quarter which saw new vehicle registration volumes reach the highest point in nine years despite high transaction prices it was the auto finance market that stepped in with creative ways to help buyers keep their monthly payments within reach Reflecting that creativity were stretching terms falling credit scores and record leasing Additionally outstanding loan balances grew by 98 million from a year ago to 968 billion Thats up more than 53 from the post recession low set in 2010 The good news is that while finance sources are making vehicle financing available to more consumers borrowers are doing their part by making on time payments In fact 30 and 60 day delinquencies fell from 27 in the year ago period to 25 and 074 to 073 respectively Now lets take a look at the key trends in 2015 s third quarter LEASING REACHES NEW HIGH Over the last several quarters leasing has become a key solution for consumers looking to control that all important monthly payment In the third quarter leasing accounted for 269 of all newvehicle transactions up from 247 in Driving Metal New vehicle registration volume returned to pre recession levels in the third quarter thanks to a creative and willing auto finance market BY MELINDA ZABRITSKI ISTOCKPHOTO COM SKYNESHER the
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