Continued Surge in Auto Loans

Since we are a junk car hauler that offers fast cash for cars in the greater Cleveland, OH area, we tend to regularly review the sales of new & used vehicles in the US market.  Without continued consumer purchases of vehicles the “cars for cash” or “cash for my car” industry would have no source for end-of-life vehicles.  As the county continues to rebound from several difficult financial years the auto industry has still been above average. This can probably be attributed to many factors especially that so many Americans rely on auto transportation on a daily basis.

Rick Newman of Yahoo Finance composed a story entitled ‘Why Americans are loading up on cars on December 2, 2014 which includes some of the following details: “The economy may be stuck in the slow lane, but the auto industry is on a tear. Sales in Nov. continued to strengthen, hitting an annualized rate of 17.1 million vehicles. The average buyer paid about $33,750 for a vehicle in November, according to car-research site KBB.com. The strength in auto sales is surprising given the recession left the typical family with less wealth & disposable income. The soaring cost of healthcare demands more of the family budget; still the American love affair with cars seems to persist. Auto loans are the only kind of credit many people can get.  The total amount of auto loans outstanding has hit new highs in 2014. The only other credit category that’s been growing is student loans, and many of those are subsidized by the government. Other types of credit, including credit cards, mortgages and home-equity loans, are still well below pre-recession levels, Subprime loans—those granted to the riskiest borrowers—account for about 20.4% of all auto loans. But auto-loan default rates have fallen steadily since 2010, as buyers prioritize car payments above other obligations. Lenders may be aided by new technology that allows lenders to electronically disable a vehicle from afar if the buyer has fallen behind on payments. The average term of a loan has crept up to 5.5 years, while interest rates, averaging about 4.5%, remain extremely low. A combination of relatively easy credit, lengthier loan terms and very low rates has helped new-car buyers borrow an average of $28,000 while keeping the monthly payment at about $470. That’s just about the best deal car buyers have had in decades. With many people locked out of mortgages and resigned to renting, a shiny new SUV may be the new starter home. Despite all the new vehicles purchased, the average car on the road is more than 11 years old, according to IHS Automotive. Cars last much longer than they used to, but still need to be replaced. With the average age of a car still rising over time, analysts expect sales to remain strong in 2015 and beyond.” The complete story is available at this link: https://finance.yahoo.com/. In summary, automobiles are a necessity to many Americans and with less Americans pursuing mortgage loans that are more difficult to qualify for, they are opting for automobiles.

Cash 4 Cars Cleveland buys cars for cash 7 days a week throughout Cuyahoga County. If looking to receive cash for my car in Euclid, Parma Heights, Lakewood, give us a call. Need a junk car hauler in Linndale Village, Newburgh Heights, Parma or Seven Hills? Receive fast cash for cars in Beachwood, Bedford, Bedford Heights and Bentleyville Village today. Residents of Bratenahl, Chagrin Falls, Chesterland and Moreland Hills can sell us old cars for cash. Free towing is included throughout the areas of Cleveland Heights, Euclid, Garfield Heights and Eastlake. Experienced cash for my car buyer in Wickliffe, Maple Heights, Brecksville, and Bainbridge, we offer same-day junk car hauler services. To obtain fast cash for cars in East Cleveland, Maple Heights or Warrensville Heights, simply contact out “cash for my car” buyer at 216-359-1010. Those living in Solon, Twinsburg, Walton Hills, Northfield or Oakwood Village should visit https://www.cash4carscleveland.com for a junk car quote.