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Low car-loan rates help auto boom

Jun 10, 2013 Philip Burgess

The once beleaguered American auto industry has displayed a robust rebound from the depths it reached during the Great Recession. In fact, Bloomberg stated the first quarter of 2013 could be the most successful period American automakers have seen in 20 years. Market share increased for the big three, as General Motors, Ford and Chrysler all beat sales expectations for the early months of 2013.

It may indicate a jump in loan activity for the auto industry, as banks and short term lenders are offering viable funding options to consumers looking to make major buys. A healthy lending environment will only help to further spur auto growth in the United States.

The latest new car sales report from Autodata shows that the industry has improved on last years' figures. General Motors has seen a 9.8 percent increase in new vehicle sales from January to April 2013, as compared with the same period last year. The year-to-date numbers in this category were also up 12.7 percent and 8.5 percent for Ford and Chrysler, respectively.

All three Michigan-based car manufacturers saw their year-to-date sales exceed the overall new car purchase rate of 6.9 percent.