Recession finally loses hold over motor vehicle market
The recession of 2008 had a drastic impact on the amount of auto loans which were approved after the financial crisis but now the motor vehicle market has recovered the losses which was incurred. The same thing cannot be said for the mortgage industry where the situation is still far below where it was eight or nine years ago. Many people was effectively ruined financially after the recession because those who suffered foreclosure saw large drops in their credit scores which made it just about impossible for them to obtain mortgage loans. There was a time when mortgage loans to the value of over $650 billion had been awarded in a single year to people with relatively low credit scores of 660 credits. After the recession approved mortgage loans has dropped to only $150 billion. Low credit scores was hampering many consumers for several years after the recession which resulted in decreasing motor vehicle loans. This started to change in 2010 and even those with relatively low scores were in most cases able to get credit approval. This has led to a substantial increase in the amount of outstanding motor vehicle debt while mortgage loans continued to decrease.
Consumers seem to be more responsible
When looking at the situation both as far as mortgage loans and vehicle loans is concerned nonpayment of debts is at the lowest level in many years. Recent research has indicated that less than 100,000 people in the US were faced with a foreclosure which apparently is the lowest number in 16 years. The same thing is true for people who have outstanding debt which is more than 90 days overdue those figures have fallen to only 2.5% which is the lowest number in almost a decade. Likewise fewer people make themselves guilty of situation where their motor vehicle payments is not made on time. There is however millions of people in US that are still struggling to make ends meet and who will require professional assistance at some point in order to obtain advice on the best way to pay off credit card debt. Research has shown that lenders are more comfortable with motor vehicle loans than they are with things like credit cards or student loans. The reason for this should be obvious and that is that the vehicle in itself provide security and it continues to be an asset which provides the lender with some security in the event that payments is not make. It is also a significantly easier to repossess a vehicle than it will be to repossess a home.
Approval for vehicle finance seems to be easier
There is just no way that you could treat student loans or mortgages in the same way as a vehicle loan. Most of the large motor vehicle manufacturer has seen a significant increase in motor vehicle sales. Because of the significantly higher motor vehicle sales that in a way has helped to protect the industry against the effects of a stronger dollar which results in a situation where US exports is more expensive. Those effects were neutralized by the sharp increase in motor vehicle sales. The immediate motor vehicle future in the US seems to be bright and positive and it will provide motor vehicle manufacturers with various benefits because increased sales in the US allows them to focus more on the local market without the need to seek alternative markets elsewhere.