Selected by CIO Review as one of the Top 20 Most Promising Automotive Tech Solution Providers in 2014.
By Cesar Yepez, Integrated Marketing Manager
As we all know this recent recession affected everyone in some shape or form. Those whose bank accounts were full now find themselves strapped for cash. And those looking to purchase a car are timid about going to their local dealership in fear of being denied because of a low credit score. Burdened with poor credit, middle class consumers have been labeled as credit-challenged, making it difficult for them to not only purchase a vehicle, but to also apply for a loan in order to purchase a vehicle. With this sudden change in demand, there has been a rebirth of deep subprime and subprime loans, looser credit standards, and longer payment terms in the automotive loans; these poor credit consumers are getting a new “lease on life.”
All of the numbers currently point to a strong rebound in the automotive market. Sales are higher than before, car loans are increasing especially in the subprime spectrum, and to top it off the value of used car vehicles is still on the rise. At a glance, it’s all sunshine and roses for consumers looking to purchase a vehicle and welcome news for dealers and lenders in the industry, but as we all know a huge spike is eventually followed by a downward spiral. We all experienced it with the housing market crash that affected millions. One has to wonder; is it too good to be true? Is this the calm before the storm? Can this trend continue for long?
Instead of waiting for the bubble to burst like most did with the housing market, industry leaders must learn from the past and take the necessary steps to prepare for when the storm comes, while also preparing for success. Industry players should take the appropriate measures to protect their assets and safeguard their bottom line.
Our company recently released a white paper discussing in more detail the current market trends and what strategies can help industry players prepare for the future.
Today, we would like to introduce a new video displaying Coach Joe Gibbs and Stefana Houldsworth, Director of product management for Spireon’s automotive solutions group, having an informative discussion on the current market trends and what strategies can help in this unprecedented environment.
To watch the video please go to: http://www.spireon.com/gps-vehicle-tracking-trends-in-automotive-finance