Though new-car sales in December came in 3% lower year over year, 2013 volume grew 8% to 15.6 million units, a six-year high, according to data released today. And while 2014 sales are forecast to cross the 16-million mark, the pace of growth has slowed.
Most automakers posted higher year-over-year sales. Here’s a snapshot:
– Ford was up 11% for the year, selling nearly 2.5 million vehicles.
– Chrysler was up 9% to 1.8 million.
– Nissan was up 9% to 1.25 million.
– GM was up 7% to 2.8 million.
– Toyota was up 7% to 2.2 million.
– VW was down 7%, selling around 408,000 units.
1) The public has alreay been “abused” by adjustable rate mortgages. Why would they trust any bank that offered an adjustable rate auto loan?
2) At the major banks, the auto finance staff are often viewed as “second class bankers” and why would the upper class treasury managment staff want to work hard to create a product for them?
3) We are losing the middle class in America and there is great uncertainty in making any regular payment. An adjustible rate adds more uncertainty to the lives of the lower middle class.
4) Finally, the negative convexity of a fixed rate loan in a rapidly moving upward rate environment, is a disincentive to trade-in your still financed car to buy another at a much higher interest rate.