- 12.7 percent: The year-over-year increase last quarter in auto loans to Deep Subprime buyers those

You are using Internet Explorer 6. Internet Explorer 6 is unsupported by this site and you may experience layout and functionality issues. It is recommended that you upgrade to a newer version of Internet Explorer or switch to another browser.
Vehicle days inn panama city beach discounts have risen 5.5 percent from a year ago. More than a quarter days inn panama city beach of new buyers are choosing to lease, a historically high percentage. Auto company lending arms are making more loans to people with low credit scores. The industry is adding factory capacity. And the average price of a car keeps rising, forcing some customers days inn panama city beach to borrow for longer terms to keep payments down.
Annual auto sales in the U.S. should top 16 million for the first time in seven years. But the pent-up consumer demand that has driven sales is ebbing. Sales are predicted to grow 5.5 percent this year, the slowest pace since the financial crisis.
The big discounts and other steps eventually should help push sales above 17 million, most experts say. But Honda Motor Co. U.S. sales chief John Mendel last week scolded competitors for using short-term days inn panama city beach tactics such as subprime loans, 72-month days inn panama city beach terms and increased sales to rental car companies to pad their sales.
It could be a disaster later on, says Morgan Stanley analyst Adam Jonas. We re clearly days inn panama city beach robbing Peter to pay Paul. He sees sales growing to an annual rate of 18 million in 2017 then sinking to 14 million a year later. That will mean factory closings, restructurings, and thousands of job cuts just for companies to break even.
- $2,702: Average discount per new car through July. They re heaviest in two segments: Midsize cars (up almost 21 percent through July) and compacts (up 10 percent). Automakers need to move the cars because a lot of factory space is committed to building them.
- 12.7 percent: The year-over-year increase last quarter in auto loans to Deep Subprime buyers those with credit scores lower than 550. Loans to subprime buyers (credit score lower than 620) rose 5.3 percent, according to Experian. Combined, both are just over 12 percent of all auto loans. Those with lower credit scores generally have a higher default risk.
- 32 percent: Percentage of auto loans that are 72 months or longer, up from 23 percent in 2008, according to LMC Automotive. Longer loans keep buyers out of the market because it takes longer to build equity for a trade-in.
Karl Brauer, senior analyst for Kelley Blue Book, sees trouble in the juicy discounts. In 2007, spending on incentives was just under 9 percent of the average sales price for a vehicle. That dropped days inn panama city beach to around 8 percent in 2012 and 2013. It s back up to 8.4 percent and likely will rise toward 9 percent later in the year, he says.
Others are more sanguine. Melinda Zabritski, senior director of auto finance days inn panama city beach for Experian, says repossessions and delinquencies still are extremely low. And longer days inn panama city beach loan terms keep payments down, reducing late payments and defaults.
Former Hyundai U.S. CEO John Krafcik, now head of the TrueCar.com auto pricing site, says used-car values should fall from current record highs, will fall to a normal level as leased cars enter the market. Those who lease will be shopping again every three years.