There is no doubt that the auto finance sector had a very tough row to hoe in the years following the recession of 2008 and 2009. After all, when consumers cannot get credit they cannot buy cars.
However, according to the participants at last week’s Auto Finance Summit in Las Vegas, those long-worn frowns have been turned upside down. Speakers at the summit spoke about growth and prosperity. They said that more capital was needed and is coming so that lenders will be making even more loans. They said that investors are clamoring for pre-credit crisis level spreads.
The data support the happy news. Credit losses and delinquencies are hovering near all-time lows. In fact, some auto finance observers are saying the today is the best of times in auto financing. Auto Finance News says that times are so good, that it is projecting a growth in the sector of more than 5% to reach more than $400 billion in the coming year.
Yes, these are happy times indeed.