Auto Lenders Loosen Up in July

Based on July sales figures, car loan money is becoming easier to acquire. Sales for most U.S. automakers rose last month, proving both that money is available and that consumers are cautiously exercising a little confidence in car-buying.

Here’s how the numbers shaped up:

General Motors Co. saw its sales rise 6.4 percent from a sluggish June and 24.6 percent from July 2009. Chrysler Group experienced a 5 percent increase in sales over a year ago aided by a strong outflow of Jeeps and Ram trucks. Ford Motor Co.’s sales were unchanged in July from June, but were up 3 percent over the previous year.

Toyota, Nissan and Honda all had monthly sales increases. Toyota Motor Corp.’s sales climbed 20 percent in July, but fell 3.2 percent on a yearly basis because of its massive recalls earlier this year and the buyer concerns those created. Honda Motor Co saw sales jump up 5 percent from July 2009, but figures were also down from the year before. Honda Motor Co. And Nissan Motor Co. sales rose 28 percent from June.

And certainly all those new cars were not bought straight out with cash, so it stands to reason that auto lenders are handing out the loans more readily these days. And Kurt McNeil, sales and service vice president for Cadillac, can confirm that idea. He was quoted in the Detroit News saying that he believes the higher sales volume was due in large part to increased loan funding.

“We’re seeing more credit availability,” McNeil said.

And now that all the government stimulus and bailout programs have ended, we may get a chance to see where the market will settle. According to GM’s chief economist Ted Chu as quoted in the Boston Globe sales will continue to gently rise this year as long as the unemployment rate can ease down and gas prices remain below the $3 per gallon mark. In that case “pent-up demand is going to continue to be the driver.”

One Response to “Auto Lenders Loosen Up in July”

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