An improving economy and rising consumer confidence continue to fuel recovery in the auto industry. In 2010, U.S. auto sales increased 11.1% from 2009. Also, in February 2010, auto sales climbed 27% with more than 40% growth coming from Toyota Motor Corp. (TM) and General Motors Corporation (GM).
Will this drive value for banks? Yes, since rising sales along with stabilizing delinquency rates will encourage banks to lend more money to auto buyers and consequently support their interest income growth.
According to TransUnion, a Chicago-based credit reporting agency, in the last three months of 2010, auto loans increased 28% from the year-ago period. The average size of the auto loan increased to $12,602 in the fourth quarter of 2010 from $12,500 in the prior-year quarter.
Buying Incentives : The Spark Plug?
Auto sales were aided by a host of factors, with cash incentives being behind the wheels. A case in point
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Cat Power January Jones Christina DaRe Malin Akerman Melissa Joan Hart
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