Car sales predicted to jump, a good sign for auto lenders

American auto makers have performed above expectations in the last year, which is a great sign for short term lenders and other automobile financiers.

According to a report from J.D. Power & Associates and LMC Automotive, the number of new vehicles sold in May is predicted to reach 1,157,900. It would be the third straight month in which new car purchases topped 1 million.

In May 2012, 1,070,816 new vehicles were bought by U.S. consumers. If the prediction holds true, it would be a year-to-year increase of 8 percent.

"This is the time of year when the automotive industry holds its collective breath as the recent past has dealt with a spring slowdown in demand; however, the current pace suggests full steam ahead for the second half of 2013," said Jeff Schuster, vice president of LMC Automotive.

The Associated Press reported that Ford, General Motors and Chrysler are scrapping their traditional two-week summer production breaks to help meet consumer demand. Ford will only shut down factories for one week, GM will eliminate the break altogether and Chrysler will keep six of its factories open all summer.