|SAAR of sales per 1000 people|
|Auto finance rates|
- Reduced sales over the last two years - I expect people to eventually replace vehicles they kept for longer because of economic conditions. Sales are still very low, even assuming a twelve year replacement period.
- Historically low finance rates - Lower rates mean more purchasing capacity for the same monthly payment or a lower payment for the same principal. I add that a friend that works in a Toyota dealership has commented to me more than once that demand is not an issue for them as much as access to financing is. If that is true, a pickup in willingness to finance would fuel an increasei n sales
- High rate of unemployment - No Job, no loan
- Increasing quality means vehicles last longer - 10yr 100,000 mile warranties ring a bell?