A recent survey has noted that consumers are increasingly buying cars because they need them, not because they want them.
Specifically, only 21% of respondents to a study by Chrome Systems, a unit of DealerTrack, said they bought or leased a vehicle this year because they wanted something new, down from 32% in 2009. The No. 1 reason for replacement: their current vehicle was either unreliable or had broken down (26%, up from 19%).
Meanwhile, the American Bankers Association released data today that shows a 2 basis point decline in indirect auto loan delinquencies and a 12 basis point drop in direct auto loan delinquencies for the second quarter.
As vehicles become ever more critical to consumers, it seems like delinquencies should improve for at least the next six to 12 months.
Click here for complete survey results from Chrome.
Click here for second quarter delinquency data from the ABA.
