The best sales in more than a decade
The US motor vehicle market finds itself in a situation where the amount of outstanding motor vehicle debt is now exceeding the amount of $1 trillion. There are several contributing factors such as the fact that the average payment for new vehicles is just under $500 which is a record. Furthermore the average amount approved for new vehicles was just under $30,000 also record. The average loan term for all new vehicles is now 67 months while the terms for used cars is now 62 months. There are several other conditions which have changed which has contributed to the increased vehicle sales in the US. There are some who say that the increase in US auto sales is being driven by very risky lending practices which has some similarities to the practices which were used in the housing market before 2008 and which was directly responsible for the spectacular collapse of that market. There are many specialists that have already came to the same conclusion that we may be heading to a disaster very similar to the one which has struck the housing market almost a decade ago.
There are nevertheless reason for hope
Economist is saying that although there may be similarities it could be expected that every thing will turn out fine as far as the motor vehicle industry is concerned. The latest releases of sales figures confirm that increases in sales is still taking place just as it has been doing for some time now. Both the sales of new and used motor vehicles has increased sharply and this trend is expected to continue for some time. It is however a fact that sales prices for both new and used vehicles has increased substantially which is leading to a situation where the leasing of motor vehicles has become the more sensible option. By making use of vehicle leasing it is possible for consumers to obtain a more affordable monthly payment. It is especially those people who formerly could not afford to purchase a motor vehicle who are finding the option of leasing a vehicle a more financially viable option. There is those who feel that there is currently not enough transparency in the motor vehicle industry and that both specialists in the vehicle industry and specialists in the lending industry is not forthcoming with information as to why people should not worry about a coming crisis. There is still professional help obtainable for those who struggle with various types of debt at http://debt-settlement-review.toptenreviews.com/.
What could vehicle owners expect?
The questions which vehicle owners should ask themselves is whether there is reason to be concerned. How will a sudden recession affect people who have recently been approved for motor vehicle loans? The home mortgage market was doing exceptionally well for many years and very few homeowners expected to be affected by the recession in the way that they were. What would be the position of new motor vehicle owners if this were to happen again leading to the loss of their motor vehicles while they themselves is sitting with large debts which has to be repaid.