Tomahawk, WI 08/04/2014 (Basicsmedia) – Ford Motor Company (NYSE:F)’s auto sales for July was the best in 8-years, highlighting the fact that the company is finally making its mark in the market, as well as the impact of subprime loans that continue to be favorable with many buyers. Sales for July were up by 9.6% year over year, following a dip of 5.8% in June. Low interests on Subprime loans according to Kelley Blue Book’s, Karl Brauer, continue to be the most attractive feature in most people wishing to find a viable financing option for vehicles on sale.
Ford Motor Company (NYSE:F) is currently enjoying its best run in terms of car sales especially with increased sales for F-150 models, despite the fact that the company is set to launch a new version of the same very soon. Big Trucks, Mid-SUV’s and Big SUV also continue to perform extremely well as people continue to buy more of the SUV’s.
Despite the fact that the SUV’s consume considerable amount of fuel and the fact that gas prices are high in some parts of the country, people are still buying them in plenty. “People are buying SUV’s again, and it is interesting, because in my Opinion, I think people felt almost guilty buying them for a while between gas prices and the economic downturn 7-8 years ago,” said Mr. Brauer in an interview on Bloomberg.
The rate at which people are getting subprime loans is also slightly lower compared to the past years, reducing the chances of the default rate reaching scary level where it could cause concerns as it was the case during the epitome of the financial crisis.
”… Banks are looking for other ways to make money, and Subprimes is the way to do it. So you got to be careful because this got us into trouble before. The difference I think this time is that, the rate of subprime loans, you know people getting subprime loans, is still not high as it was before and thus so far the default rate from the subprime people isn’t at a scary level,” said Mr. Brauer.
Ford Motor Company (NYSE:F) is one of the volume makers that is well-exposed on subprime loans as it does carry out its sales in mass volumes as opposed to luxury vehicles automakers.