ONLINE BANKING
Access ID:
Pay Online Button
Apply Now Button

Consumer interest in the auto industry remains strong

Posted on Wednesday, October 1, 2014 at 10:04:36 AM

Similar to many industries, auto manufacturers took a hit following the recent economic recession. However, when it comes to auto financing, sales and other statistics, overall consumer interest and activity remains strong - given the current environment.

According to TrueCar, September's average transaction price for light vehicles dropped 1.4 percent on a yearly basis and fell 1.9 percent compared to August, now at $31,014 for the month. The average incentive in September was $2,801. Even with the declines, these levels are on track with what should be seen following the recession.

"The industry is operating within healthy post-recession levels," said Larry Dominique, president of ALG and executive vice president of TrueCar. "The ratio of incentive spending to average transaction price is lower month over month. We'll be watching incentive levels for unhealthy behavior as brands look to steal some year-end market share."

The strength in the market is evidenced by improved vehicle sales. For example, the Chrysler Group reported that September sales in the U.S. increased by 19 percent. That is good for the best mark since 2005, and also represents 54 months in a row with year-over-year sales gains.