Brad Tuttle, TIME – After years in which tons of dealerships closed, auto brands disappeared, natural disasters caused vehicle production disruptions, and consumers just didn’t have the money or desire to drop big bucks on cars, 2012 looks to be a return to good times for the auto industry.
Last year was a decent one for car sales: Dealerships sold 12.8 million new cars last year, up from 10.4 million in 2010. This year is expected to be even better for dealerships, and the auto industry as a whole.
Reporting from the annual auto dealership convention over the weekend—held, wouldn’t ya know, in Las Vegas to coincide with the Super Bowl—the Detroit Free Press rounds up all the signs and insights that indicate a terrific 2012 is in the works. After drastically trimming the number of dealerships during the worst days of the recession, automakers’ sales forces are leaner and more apt to make profits. The recession also forced dealerships to cut marketing costs—mostly by turning to the web, which is much cheaper than traditional advertising—and they seem to be keeping these cost-saving strategies in effect even as the economy rebounds. (Based on how many automakers advertised during the Super Bowl, though, it doesn’t look like they’re scaling back that much on traditional advertising.)
Perhaps most importantly, automakers and dealerships are optimistic about 2012 because the unemployment rate has declined to a three-year low, measuring at 8.3% recently. Lower unemployment obviously helps car sellers because when more people have jobs, more people can afford cars, but also because a decreasing unemployment rate tends to make consumers more confident in the economy—and more likely to feel OK about buying a big-ticket item like a new car.
Though 2012 is barely more than a month old, it’s already shaping up as a strong year for car sales. Americans bought more than 900,000 new cars in January 2012, an increase of 11.4% from the previous January.
It’s not just sales of new cars, but used cars as well, that are expected to have an outstanding 2012. The National Automobile Dealers Association anticipates strong demand for used cars in 2012, and with that comes higher prices. When adjusted for inflation, used car prices rose 3% in 2011, hitting all-time highs in the summer. This year, used vehicle prices are expected to increase again—by 1.8% by the end of 2012, on a seasonally adjusted basis, according to NADA.
Given the current high cost of gas, prices for fuel-efficient used compact and midsize cars are expected to rise more than average, by 2.7% and 2.1% respectively. That’s the scenario if fuel prices continue to hover around $3.50. If gas prices soar above $4, or even $6, which some experts say is a possibility, then demand (and prices) for gas sippers will surely skyrocket right alongside them.
In more potentially bad news for consumers, prices of new cars may rise significantly as well. SmartMoney reports that GM, in its quest to raise profits, is planning to raise prices on cars. Currently, it’s profit margin is 6%; it wants to raise them to 10%.
Finally, Bloomberg points to one more factor driving the strong pace of car sales. Lenders such as Capital One are once again approving car loans within 30 seconds, which was unheard of during the heyday of the recession.
Faster loan approval obviously bodes well for speedier, and just plain more, car sales. That’s good news for automakers and car dealerships. As for the drivers taking out those loans, well, some of them wind up wishing that process was slowed down a bit.

The following two articles indicate continued improving car sales are headed our way. If volume continues at the December rate, an annualized growth of 14.7% could be in store for 2012 !! Some dealers are predicting 20% to 30% growth, although industry analyst have predicted around 13.7 million SAAR, which translates to 7.9% growth for 2012.

Auto Finance News-DEALERS ENERGIZED By 2012 PREDICTIONS
Years of pent-up demand will send vehicle sales soaring this year, with some dealers predicting 20% and 30% growth. “Sales are going to be explosive in 2012,” said Brian Benstock, general manager at Paragon Honda in New York City. “We sell items that need to be replaced. The pent-up demand is forcing people to make purchasing decisions, and this will help end this recession.”
For Paragon, the No. 1 Honda dealership in the U.S., 2012 means continued growth and an eye on maintaining that top slot. In 2011, the dealership sold 7,749 new and used vehicles; Benstock hopes to increase that number 25% in 2012. “The clearer the vision, the more attainable it is,” he said.
Meanwhile, dealer Paul Sansone Jr. expects the slow sales of previous years to come to a head in 2012. “There is pent-up demand,” said Sansone, owner of Sansone Jr.’s Route 66 Automall, noting that consumers have put off purchasing new vehicles for years during the recession.
Last year’s SAAR came in at 12.7 million units, up 10% from 11.5 million units in 2010. Still, new-car sales volume has yet to reach the 13.2-million-unit pace recorded in 2008, or the 16.1-million unit pace of 2007.
While data providers TrueCar and J.D. Power and Associates anticipate a SAAR between 13 million and 14 million for 2012 — a 10% hike from 2011.

Auto Finance News – 2011 SALES END ON HIGH NOTE
New vehicle volume has been gaining traction for two straight years, and all indications point to additional growth in 2012. Overall, totals surpassed the one-million mark nine times last year, ringing in a 12.7 million SAAR. Volume in December hit 1,243,965 units, up nearly 40% from volume in December 2008.

Yahoo! Autos – So you’re all ready to buy another car. You’ve done your research and you know the make and model you want to take home. Perhaps you’ve decided to buy a new car right from the dealership. Or maybe you’ve been scouring the used car lots and classified sections to find a previously-owned vehicle. But if you haven’t done so already, it might be in your best interest to look into buying a certified pre-owned (CPO) vehicle. If you don’t, you might just be missing out on one incredible deal.

New Car Condition at a Used Car Price
You assume a certain amount of risk when you buy a used car. You don’t know who has driven it before you or how the car was treated. Hopefully, the seller will tell you what needs to be done before you drive away, but this isn’t always the case.

When you buy a certified pre-owned vehicle, you are getting a reasonably new car with low mileage. Qualified technicians have placed it through an elaborate series of manufacturer-specified service checks, so all of the kinks have been ironed out before you buy. The car may have a few more miles on it than the new ones on the lot, but you would never tell by looking at it.

More Car for Your Money
Say you want to spend $25,000 on your next car. You can spend it all on this year’s new base model. Or you can put it towards a CPO vehicle that might have a few more miles on it, but comes with a ton of features and amenities that you really want but otherwise couldn’t afford.

Minimize the Effects of Depreciation
Thanks to depreciation, as soon as you drive a new car off the lot, it automatically loses upwards of thousands of dollars in value. The longer you drive the car and put miles on it, the more depreciation takes its toll. But when you buy a CPO vehicle, it’s as if somebody else has already paid those initial depreciation costs for you. The car is still in excellent condition, it just cost you a whole lot less.

Backed by a Manufacturer’s Warranty
When was the last time you bought a used car and got a comprehensive manufacturer’s warranty? Probably never. But when you buy a CPO vehicle, not only do you get a previously-owned vehicle in excellent condition, but it’s also backed by an unrivaled limited manufacturer’s warranty. So you get to enjoy the peace of mind that comes with knowing your investment is fully covered. And if anything were to happen to the car while it’s under warranty, you wouldn’t have to argue with a dealership or hunt down the number of the guy who sold it to you.

Lower Service Bills
A certified pre-owned vehicle comes to you in excellent condition. The manufacturer and dealership have taken a minimum of over 100 steps to make sure that this is the case. And while it may appear to cost more than finding an equivalent used car in the classifieds, it probably either balances out-or costs less-in the end.

That’s because a used car will most likely require you to plunk down some serious cash while you get it up to a desirable condition. And even then, you can’t be certain that more surprises aren’t awaiting you at any given moment. But any such problems in a CPO vehicle have already been resolved, so you save money in the long run. Plus, you also get a manufacturer’s warranty that would significantly boost the price of any used car.

All the Perks of Buying New
In an effort to draw attention to their fleet of CPO vehicles, many dealerships are offering incentives traditionally reserved for new car buyers. Among the most appealing are new car financing rates that can save you thousands of dollars over the life of the vehicle. Other incentives include service loan cars, shuttle services, roadside assistance, and free maintenance. Imagine getting a previously-owned vehicle, but enjoying all the perks of buying a new car. Each dealership is different, however, so be sure to ask what is included with the price.

By now you should have a better idea of how you want to buy your next car. You can enjoy the security and prestige of buying new, or the financial benefits of buying used. Better yet, you can buy a certified pre-owned vehicle and enjoy the benefits of both, while saving money at the same time.

DETROIT (AP) — General Motors Co.’s U.S. sales rose 13 percent last year as the company recovered from its financial disaster in 2009.

GM sold just over 2.5 million new cars and trucks in the U.S. Its December sales rose nearly 5 percent from a year earlier.

The Chevrolet Cruze compact and the Chevrolet Silverado and GMC Sierra pickup trucks led sales.

Other carmakers reported strong sales for 2011. Chrysler sales jumped 26 percent, Ford sales rose 11 percent and Nissan’s climbed nearly 15 percent.

Industry analysts say people are starting to buy cars and trucks because they feel more confident about the economy. They expect total U.S. sales in 2011 to be around 12.7 million. That’s up nearly 10 percent from 2010.

A recent MarketWatch.com report reveiled Ford Motor reported that U.S. sales for 2011 jumped 17% to 2.06 million vehicles, helped by solid demand for its small fuel-efficient cars, utility vehicles, and trucks. Total sales for 2011 climbed 11% to 2.15 million. Ford said it now sees the global economy expanding by about 3% for 2012, with global industry sales of 75 million to 80 million. The U.S. economy is seen as growing by 2% to 3%, with industry sales of 13.5 million to 14.5 million.

Credit Union Times
It offers a purchase process for participating credit union members, new memberships … in 2002 by the $1.3 billion South Carolina Federal Credit Union.

Thanks to Greg Cook at CUNA for forwarding the attached White Paper from FICO detailing important changes in Consumer Credit Behavior, including Smartphone usage, and Loan growth opportunities with low risk. Although Indirect is an excellent method for growing your loan portfolio it is by no means our only source. I hope you find this article useful.