After growth of almost 6% in light vehicle sales in 2012, BMI expects a more modest expansion in 2013, inthe range of 2%. While this is partly due to the base effects created by strong growth in a largely saturatedmarket in 2012, we are also concerned by the rising levels of auto loan growth, which appears to beoutstripping other forms of consumer debt. Although delinquency levels are actually lower than these otherloan types, there is still a major risk to the industry should rates go up in the short term.With interest rates held at 1.0% since 2010, the mindset of spending rather than saving has taken hold. ByQ412, the average auto captive debt was CAD19,345, up 9% f...
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