Experts Warn, Risky Behaviour from Auto industry May Result in Trouble
In the struggle to sustain coma back in the post recession years automobile companies are embracing tactics which experts feel could lead to trouble in the future.
Discounts on vehicle have grown 5.5 percent from what it was one year back. Buyers in large numbers are opting to lease under the circumstances. Auto loan companies without a way out have taken to give loans to consumers with low credit scores. The auto industry is adding on to their present factory capacity resulting in a rise of average car prices which in the bargain is forcing a lot of buyers to borrow money for a longer term to keep the regular payments low.
In the first instance in the last seven years the annual sales of automobiles is likely to surpass 16 million. However the already cramped up consumer demands has driven the numbers in sales to fall. It is predicted that the sales will grow 5.5 percent in the current year which is at its slowest speed from the time of the financial crisis.
Most of the experts say that the luring discounts along with other offers should finally give a push to the sales making it reach the mark of 17 million or more.
However last week, John Mendel the U. S. sales chief of Honda reproached the competitors for putting "short-term" tactics into use to fill the gaps in their sales figures.
New Zealand News
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