The drop in oil prices and the decreasing amount consumers are paying at the pump may boost auto sales and financing, according to a new report from Standard & Poor’s.
Lower gas spending and the corresponding boost in disposable income will encourage consumers to buy cars, and could also influence the sales mix to larger vehicles, S&P wrote in its “2015 U.S. Credit Outlook for Autos, Airlines and Aerospace.” Subprime lenders, though, could be negatively impacted by rising interest rates in the second half of 2015, Erkan Erturk, senior director for S&P structured finance ratings, told Auto Finance News.
