Our Blog | Recent Posts
Bye Bye 2011 – 2012 is Looking Great for the Auto Industry!
So we’ve all had a couple of days to adjust to signing “2012″ on our checks and can take a little bit of a look back at the end of 2011.
Great news featured by Bloomberg this week with the headline “Dealer’s Best December in Five Years Follows U.S. Sale Ads”. Consumer confidence is climbing and looks to be about to continue its momentum into Q1. Couple that with the rebound by the Japanese automakers recovering from the tsunami that knocked out production capacity in March, and inventory looks to be on track to meet the demand.
There’s are two 2012 predictions in Beggs’ analysis that I’d like to highlight here:
“We expect new-car sales levels to continue to climb, hopefully to at least 13.5 million,” he continued. “This creates another possible 700,000 to 800,000 potential trade-ins.
“But with end-of-term lease return volumes to bottom out this year, there will continue to be a tight supply of used vehicles, thus used values will be strong again this year,” Beggs projected.
That means that handling used inventory will continue to be an important part of an effective dealership strategy for a profitable 2012.
And then there’s this tidbit:
“The lending part of the industry we feel will be aggressive again in overall approvals of even slightly lower beacon scores, increased advance amounts in relation to actual cash value and longer length of loan terms,” Beggs estimated.
Now that’s what I’m talkin’ about.
We’ve been talking about how “special finance is back” for months now as lenders have been loosening up through Q3 and Q4 of 2011, and it continues to grow as more consumers are coming back into the market and looking for cars to buy.
Don’t believe me? Check out our Volume Estimator and see how many car loan applications we’ve seen in your area in the last 30 days. Every single one of those is a validated finance lead that you could be working at your store.
Fasten your seatbelts, it’s going to be a great ride in 2012!