Moody’s: We may be approaching an inflection stage for autos one hour Ago | 03:13
The U.S. vehicle market is facing dropping demand and looser loan expectations, according to a new article Tuesday from Moody’s Investors Service.
The firm is predicting sales to fall about 3 percent in 2018 to 16.8 million vehicles, down from the 2016 high of 17.4 million units.
“Indications are there that we may be approaching an inflection stage available on the market for autos,” William Black, managing director at Moody’s, said in an interview with “Power Lunch time” on Tuesday.
Moody’s is also forecasting a drop in used-car prices because of pressure from a record number of off-lease supply.
In terms of automobile financing, Moody’s said strong competition among banks, credit unions and boat loan companies has resulted in looser underwriting standards. That is “driving increasing delinquencies and losses,” the article said.
There happens to be $1.1 trillion in fantastic automobile financing, Black pointed out.
“That’s the major it’s ever been,” he said.
– CNBC’s AJ Vielma contributed to the report.