AutoNation Chairman and CEO Mike Jackson says auto financing conditions are “fully back” to where they were six years ago. Are they?
Art Spinella, CNW Research president, says all indications are consumers are reverting back to home equity loans to purchase autos.
“But what is different, of course, is using home equity lines as a piggy bank. Those days are over,” Jackson noted. “That has nothing to do with auto finance, but it certainly was part of the business that people could use home equity for down payment or even to pay for the entire car. That game is over.”
But Spinella discovered indications are consumers are reverting back to home equity loans, especially among those who have been long-time owners of their residence and still have equity to use.