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String of reports point to improvements in auto financing

Dec 21, 2011 Randy Mosteller

The U.S. auto industry has taken quite a hit in recent years, as consumers reined in their car purchases and producers were forced to send critical factory jobs to overseas markets. However, a slew of data released within the past few months suggests conditions are improving. For instance, Bloomberg recently reported that 2011 auto sales are on track to be the best in three years. Another survey from TransUnion projects delinquencies on auto loans to remain near record-lows through next year. This week, reported additional signs of improvement in the sector, as evidenced by the volume of financing activity. What's more, the Finance and Leasing Association reported motor finance sales for new cars increased by 6 percent in October, compared to the same period last year. The figures also show a 10 percent gain over the last three months. "Despite the tough economic conditions, motor finance sales have remained robust," said Paul Harrison, head of motor finance at the FLA. "This reflects the good deals available on the forecourt and high standards of customer service."