Latest Online Edition Read Here

The Used Car News Report: Carvana and Optimism Grow

Older Consumers Carry More Debt, Risk

Older Consumers Carry More Debt, Risk Featured

Older consumers have long been considered sure bets when it comes to auto finance. While they remain the safest group by age, there is some rising risk. A recent study by a trio of economists finds that older Americans are holding more debt than their counterparts did two decades ago – mostly due to the purchase of more expensive homes and putting less down. Oliva S. Mitchell, a professor at The Wharton School of the University of Pennsylvania., is one of the study’s authors She said they started looking at credit patterns among older buyers when they noticed Baby Boomer women were working longer into their 60s. It seems one reason is the higher debt their households have. “This means that they are carrying more debt into retirement and are more vulnerable to rising interest rates than in the past,” Mitchell said. “While no one knows for sure how the economy will evolve in the next several years, based on past experience it appears that the rising Federal deficit will drive inflation up, and in turn, interest rates. This will make everyone holding existing debt – especially adjustable-rate debt – more risky.” If older consumers hold more debt than before, extending credit to this age group becomes riskier, Mitchell said. Analysts at Experian found the same trends as Mitchell’s group, as reported in the firm’s latest “State of Credit” report. The Experian report goes on to state that Baby Boomers have the lowest late payment instances of all the generations, but they need to continue their positive credit behavior as they take on more debt.  
Last modified on Tuesday, 27 February 2018 18:19
Consumer Reports Ranks Brands For Reliability

Consumer Reports Ranks Brands For Reliability

Toyota and Lexus once again finished atop the Consumer Reports’ Annual Auto Reliability Survey, but the news was the No. 3 finisher – Buick.The General Motors division became the first...

Audi Recalls Cars for Incorrect Tire Labelling

Audi Recalls Cars for Incorrect Tire Labelling

Volkswagen Group of America Inc. is recalling 3,543 2014-2015 Audi S7 and 2016-2018 RS7 vehicles. The tire information label on these vehicles incorrectly lists the combined maximum weight...

  • Research Firm Highlights Autos
    Research Firm Highlights Autos Stock-Callers.com spotlighted auto dealership groups in its recent stock research report.It stated the auto dealership industry, which continues to benefit from an improved labor force, cheap gas and low interest…
    Written on Tuesday, 16 August 2016 14:34
  • FTC Accuses Dealers of Yo-Yo Financing
    FTC Accuses Dealers of Yo-Yo Financing The Federal Trade Commission has charged nine Los Angeles-area auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices. This is the…
    Written on Sunday, 02 October 2016 18:53
  • Reynolds Continues Library Rollout
    Reynolds Continues Library Rollout The Reynolds and Reynolds Company today announced that Reynolds Document Services has developed 30 state-specific Reynolds LAW brand finance and insurance (F&I) documents libraries, surpassing the midway point to a…
    Written on Thursday, 22 September 2016 17:00
  • Santander Names CEO
    Santander Names CEO The board of directors of Santander Consumer USA Holding Inc. announced that Scott Powell will succeed Jason Kulas as president and chief executive officer, effective immediately. Powell will continue to…
    Written on Tuesday, 29 August 2017 01:03
  • Drivin Expands Partnership with Bank
    Drivin Expands Partnership with Bank Drivin is expanding its partnership with Silicon Valley Bank with a new $6.5 million senior debt facility.This new financing will accelerate Drivin's growth initiatives and enable Drivin to continue its…
    Written on Monday, 26 September 2016 03:09
  • Auto Finance Remains Strong, But Concerns Increase
    Auto Finance Remains Strong, But Concerns Increase Delinquencies and losses on prime auto loan ABS remained historically low through June, despite slow growth in the U.S. economy, according to Fitch Ratings. Most economic factors that affect ABS…
    Written on Friday, 05 August 2016 14:32
  • Delinquencies Rise, Outlook Remains Stable
    Delinquencies Rise, Outlook Remains Stable The seasonably slow summer months are translating to notable increases in annualized losses and delinquencies for U.S. subprime auto loan ABS, according to the latest index results from Fitch Ratings.…
    Written on Thursday, 25 August 2016 14:00
  • Franchise Employees Get a Raise
    Franchise Employees Get a Raise The average annual compensation for employees at new-car dealerships working in all positions was $69,718 in 2015, an increase of 1 percent from the previous year, according to a new…
    Written on Sunday, 02 October 2016 18:53
  • Lender Relationships Critical to Dealer Success
    Lender Relationships Critical to Dealer Success The relationships auto finance providers develop with dealerships are critical to dealer satisfaction and to remaining competitive in the market, especially as the new-vehicle sales market tightens, according to the…
    Written on Monday, 15 August 2016 14:53
  • Margin Between Trucks, Cars Widens
    Margin Between Trucks, Cars Widens Average wholesale values fell modestly and in line with typical seasonal patterns in August. According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class,…
    Written on Tuesday, 27 September 2016 14:19