Car loan disbursements poised for sustained growth [Video]
Posted on Sunday, November 13, 2016 at 2:03:13 PM
Car purchase volumes, as well as automotive financing performances, tend to be exceptional economic indicators in the United States. Between fueling manufacturing jobs and showing consumer confidence, a healthy automotive lending and buying landscape translates to promising economic growth, and a new report gives plenty of reason for high hopes through the next four years.
Technavio recently released its latest research on the global automotive lending landscape, forecasting a 4.56 percent compound annual growth rate between 2016 and 2020. Interestingly, the analysts found that a higher rate of consumers began purchasing new models in 2014, in turn making automotive financing among the most rapidly expanding segments of the retail banking sector.
What's more, Technavio pointed out that while captive loan distributors were far more popular before 2007, the tides have shifted back toward smaller financial institutions, credit unions and other traditional lenders.
If you intend to purchase an automobile in the next few years, consider discussing the best possible financing programs available to you with a representative from your community bank. These establishments tend to provide a more personalized approach to financing guidance than large, multi-national banks.