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Over the years, the price of the cars, its features and demand, all three have risen significantly. In order to keep up with this demand, the auto finance industries have come up with a large variety of financial products time and again.
You will come across a lot of statistical figures and survey reports that will point towards the growth of the auto finance industry but there may be other reports that will try to prove that this is facing a tremendous crisis.
Why this discrepancy? This is because there is no need for a license to prove anything statistically. It is not like driving a car or operating on a patient, both of which cannot be done without having a proper license. It is for this reason lying with statistics is so common in people.
Taking a deeper look into the matter will help you to know about the twists and turns of the truth when it comes to the facts and data released by the Feds regarding delinquencies in auto loans.
Reading between the headlines
Recently, there has been a headline that was doing rounds in different newspapers and other media all across the nation. It read ‘Delinquent car loans hit record highs.’
These people then brought forward their point of view regarding this matter and of course, there was a difference in opinions as well, just as it is always.
However, these people did not tell the whole part of the story or were unable to deduce it themselves. No matter whatever is the reason these people did not tell you that:
The good news, therefore, is that you can now avail auto loans easily from different sources and even in favorable terms both from traditional sources like banks and other financial institutions and credit unions as well as from other private finance and money lending companies such as Liberty Lending and others.
The number game
Since statistics is all about numbers there is a broader game that can be played with it simply due to the fact that most people believe that the numbers do not add up.
According to a recent article published on the Knowledge@Wharton site that is titled ‘Is a Subprime Auto Loan Crisis Brewing?’ discusses the matter through an interview that involved eminent people such as:
According to the excerpts of their interview, it revealed a few specific statistics that are reasonable and more believable.
Considering the seven million individuals facing the risk of losing their vehicle who are families, it showed that:
If one wears their shoes they will find it to be very traumatic when a family loses a car or faces a risk of losing it due to defaults and high delinquency rate. It also adds to the inconvenience in commuting whether it is for their work or to the mall to buy their needs or even to take their kids to soccer practice. Add to that there is a constant fear that the car may be repossessed anytime on the road while driving.
In addition to that, the Flowing Data also showed that:
Why did not they tell you these things? This is because such a downward curve in the rate of delinquency is actually the indication that there is a significant rise in the total number of borrowers in the past several years which typically points out at the growth of the auto finance industry – a thing they were so desperate to prove to the general public and other critics.
Therefore, if you believe in stats make sure that it is coming from the right source and covers all angles to make a crucial conclusion.