U.S. automakers are desperately working to turn inventory while overcoming many hurdles such as new-car inventory overflowing lots, declining sales, and a growing used-car surplus that is driving down the resale value on leases. Adding to the pressure, financial institutions have decided to tighten their credit lines for new vehicle purchases.
Throughout recent years, Wall Street has helped the U.S. auto industry get through its rough patches by providing cheap and easy credit to boost sales and make loans more affordable for consumers. With bad loans and interest rates on the rise, lenders are becoming more selective in dispersing credit. Subprime borrowers are falling behind on their car-loan payments at an alarming rate that hasn’t been seen since the 2008 financial crisis, making it too risky for lenders to dole out credit.
So what impact will all these challenges have on new-car sales for automakers? Read the full article by Automotive News: http://bit.ly/2ok4m5U
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