Feb 13, 2013 Philip Burgess
Consumer credit reports have been strong in recent months, and the automotive sector is responsible for much of that growth. As auto sales and prices climb, the good news continues to pour in for debt collection agencies.
"This year is off to a very good start for General Motors," said Kurt McNeil, vice president of U.S. sales operations at GM, according to USA Today. "There's a sense of optimism among our dealers that only comes when you pair a growing economy with great new products.
Multiple reports have found auto sales numbers to be on a steady rise - but it may be the increasing prices that have debt collectors optimistic. According to a recent MarketWatch report, those prices aren't expected to drop much going forward.
"Automakers are being more disciplined, and there's a lot of new high-volume, mainstream models hitting the market," Jessica Caldwell, senior analyst for Edmunds.com, told the news source.
Chrysler Group, for example, has increased its average price by approximately $1,000 year-over-year, even as the company achieved a 16 percent jump in total sales. Likewise, Ford saw its average price rise more than $500 in 2012 compared to 2011. In addition, incentive-laden deals were down in the fourth quarter for Chrysler, Ford and General Motors, according to the news source.
An earlier report found that auto sales got off to explosive start in January for all three major car companies, according to USA Today. Ford led the way with a 24 percent year-over-year increase, while GM and Chrysler achieved 16 percent growth.
At the same time, Americans have been less hesitant to take out auto loans that they were in the past. The Federal Reserve released statistics that revealed that non-revolving debt, which includes student and auto loans, has surpassed revolving debt.