NAFCU Analysis Sees Auto Sales In The Slow Lane

ARLINGTON, Va. - In his analysis of vehicle lending trends, NAFCU Economist Dr. Tun Wai noted that while vehicle sales actually increased slightly to 16.2-million annualized units in November, the year to date average of 16.1-million units is the slowest pace since 1998.

Automobiles actually increased to eight-million units sold in November, up from 7.5 million in October, noted Wai. Sales of light trucks, however, decreased by 400,000 annualized units.

What does all this mean to credit unions? "Due to the current soft economic conditions, low consumer confidence and high energy prices, an improvement in vehicle sales is unlikely until well into 2008," said Wai as part of a NAFCU Macro Data Flash. "A further downward move in the Fed funds rate on Dec. 11, however, might help improve the situation in the financial markets and thus, also help vehicle sales." Nevertheless, NAFCU is forecasting that vehicle sales will decrease further in 2008 to 16-million units. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com