NADA Headlines - 06/09/2017 (Plain Text Version)
Bill includes important CFPB reforms, repeals flawed auto financing guidance
First-quarter vehicle registration data reveals that auto finance sources are moving toward more creditworthy car buyers, according to Experian Automotive. The shift pushed subprime auto originations to a 10-year low. And with the total share of subprime and deep-subprime loans to drop from 26.48% in the year-ago quarter to 24.1%, the 30-day delinquency rate fell to 1.96% from 2.1% in first quarter of 2016, according to Experian Automotive. “The truth is, lenders are making rational decisions based on shifts in the market,” the firm noted in its report. “When delinquencies started to go up, the lending industry shifted to more creditworthy customers.” With the shift, average credit scores for both new and used-vehicle loans rose from 712 in the year-ago period to 717 and from 645 to 652, respectively.
Auto dealer Wes Lutz describes his customers as well-informed and purposeful. They often express an interest in advanced vehicle safety features, yet rarely in self-driving cars of tomorrow. “People are just not ready for autonomous cars,” says the owner of Extreme Dodge Chrysler Jeep Ram in Jackson, Mich., and the 2018 chairman-designate of the National Automobile Dealers Association. The auto industry may focus deeply on the autonomous-vehicle development, “but the industry is further out than the public is right now,” he says, pointing to customer indifference, at least for now.
So much for the Trump bump to the U.S. auto market. Analysts are lowering estimates for 2017 vehicle sales after five months of industrywide deliveries declining from a year earlier. Among the reasons: Carmakers are showing more restraint on discounts than expected and gridlock in Washington reduces the likelihood of a second-half surge. More than half of the analysts surveyed by Bloomberg News have reduced their full-year projections this spring, dialing the consensus back to 17.2 million light vehicles.
As part of its 100th anniversary, the National Automobile Dealers Association (1917-2017) has partnered with the Hagley Museum and Library, a Smithsonian affiliate, to create a digital collection of historic publications, press releases, photographs, video and other collateral.
The NADA digital collection at Hagley began with a scanning project supported by NADA in 2014. Since then, Hagley has digitized and made available more than 2,600 publications and 600 videos.
The publications include periodicals and newsletters like AutoExec, NADA Magazine, Cars & Trucks and NADA Bulletin. Other documents in the collection comprise material related to the annual NADA convention, now known as the NADA Show.
Past NADA conventions make up much of the video material available in the archive. Material is also available for the American Truck Dealers (ATD) division of NADA.
The NADA archive offers access to a significant resource on the study of automobile culture in America, and provides a nuanced historical view of the thousands of dealerships that have played a vital role in local economies of small towns and big cities over the last century. To view the NADA collection, click here.