Relatively low interest rates
The US consumer find himself in a situation where interest rates is somewhat lower than they were in recent years which should help to avoid unnecessary defaults when it comes to the payment of debts. In recent times the interest rates which is charged on new-car loans which stretches over a period of 48 months has decreased to only 4% in late 2015 compared to the almost 8% which applied during the same period in 2006. The economy goes through constant fluctuations and demands constantly change which always have an impact on the conditions to which a borrower may be exposed. Therefore costs could rise quite suddenly and unexpectedly. There was recently a slight increase in interest rates which was the first of its kind in a decade. Anyone with basic economic knowledge will know that interest rates is raised in an attempt to protect the economy against too rapid growth because history shows that everything that goes up may eventually come down sometimes very suddenly and this also applies to economic growth.
People should know how to read the signs
There were also statements made to the effect that more increases could be expected to take place very gradually over time. Other economists is saying that even those slight increases will have very little impact on consumers because most of them is currently on fixed-rate loans. There are still thousands of US citizens that are finding them in very difficult financial situations which leaves them with no were option but to obtain professional assistance such as those provided here https://www.nationaldebtrelief.com/. There can be no doubt that a motor vehicle is not a luxury in the US because people need to have transportation for a wide variety of reasons. People need to be able to get to their place of employment and children have to get to school. They also need a vehicle to visit family and friends and to do the groceries and all of these activities will be difficult without a motor vehicle. This is why they are certainly some US citizens who are encourage by the current situation as far as motor vehicle finance is concerned.
The economy is still vulnerable
One of the greatest concerns will probably be the slower Chinese economy since there can be no doubt that Chinese imports is providing a viable market for many exporting countries and this certainly includes the US. Just look at the impact which the Chinese economy has made on iron producing countries such as Australia and South Africa. Large and well-established steel manufacturing industries were forced to scale down or to close because of the decreasing need for steel imports in China. Although the US has a very large economy it is still influenced by global trends and therefore there is still a very real risk in the event of some kind of external shock which could impact the economy and which may have an impact on employee incomes. Although that does not seem to be very likely at this point in time it must be remembered that no one expected the previous recession to have the kind of impact which it had and therefore a little prudence is always a good thing.