McLEAN, Va.–Credit unions should start preparing for some potential big changes in the new year that could affect both indirect loan agreements and auto lending overall. The National Automobile Dealers Association is projecting that about 2,000 new vehicle dealerships in the U.S., about 10% of the overall total, will file for bankruptcy protection during 2009. And that does not take into account whether any of the Big Three manufacturers will do the same. In some states, such as Massachusetts, already approximately one-tenth of dealers have been shuttered during 2008. Expected to be hit hardest are GM dealerships, with the manufacturer considering selling or scaling back four of its brands: Pontiac, Saab, Hummer and Saturn. Dealers overall are being hard hit by an inability to secure financing for the cars and trucks they sell, although credit unions are in the midst of a multi-billion “Invest in America” initiative that is primarily focused on the center of the U.S., but is expected to go national.
Total light vehicles sales were down 37 percent in November over the same month last year, according to Autodata Corp. in Woodcliff Lake, N.J.
