Vehicle sales rise in January following consistent decline in previous months
Total vehicle sales rose from 12.5 million annualized units to 15 million annualized units in January, with monthly sales levels down 10.6 percent year over year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the report in a new Macro Data Flash report.
"The auto market may be breaking out of its malaise as sales in January rose after a sharp decline over the second half of 2021," said Long. "Most promising is an improved outlook for inventory.
"Preliminary data from car buying app CoPilot shows a used car prices beginning to decline due to increases in dealer inventories," Long added. "According to Truecar, while still up 16% from a year ago, new car prices dropped 2% in January. The decline in prices has been the most precipitous for cars that are 3 years old or less."
Car sales rose to 3 million annualized units last month, and light truck sales rose from 9.9 million annualized units to 12 million.
Domestic production in December was down 20 percent from the same month in 2020. The inventory-to-sales ratio, which reached a record low in November, rose slightly in December.
"GM anticipates the availability of semiconductors to be much improved in the second half of 2022,” concluded Long. “Until then, sales are likely to remain below pre-pandemic levels, but above last year's dismal numbers. Once production catches up, pent up demand should result in a steady improvement in sales even in a period of rising interest rates.”
For more up-to-date economic insights from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.
Growth & Retention
Add to Calendar 2023-09-22 14:00:00 2023-09-22 14:00:00 Understanding Credit Card Portfolio Sales & Agent Programs Both credit union and bank credit card issuers are under intense pressure from various sources, including competitor innovation, significant internal resource commitments, increasing operating expenses, uncertain regulatory and economic environments and a variety of capital and liquidity constraints. This has led to about 80% of all banks offering credit cards under an ‘agent issuing’ model, where a third-party issues credit cards under the financial institution’s name. While hundreds of credit unions do the same, and interest in this option has increased in the last two years, the majority of credit unions still own and manage this product themselves. Deciding whether this option can meet strategic, financial and member needs can be difficult to untangle. In this webinar, Understanding Credit Card Portfolio Sales & Agent Programs, you’ll delve into the structure of such programs, the financial and risk-profile impacts of such a decision, the contractual commitments required of both parties and discover evaluation tips and processes for any credit union that would like to evaluate this path. Key Takeaways Discover the structure of the agent issuing concept and obligations of both parties Understand the financial impact of entering such a program to the balance sheet, income statement, and critical performance ratios Ascertain the impacts to members, including both positive and negative possibilities Review the accompanying contractual structures and key considerations Develop an evaluation process that best protects the credit union’s financial and other outcomes Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 22, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend COOs CFOs NCCOs and compliance titles NCRMs and risk titles General counsel staff Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
Get daily updates.
Subscribe to NAFCU today.