“These longer loan terms are great for getting higher transaction prices, which help us today,” says J.D. Power’s Thomas King. “But obviously, they’re creating the risk of great problems for the future.”
The Department of Defense ruling has had the effect of banning the sale of Guaranteed Asset Protection to military members. The American Financial Services Assn.
and dealers would like to see it reversed.
Consultant Michael Dunne counts 11 Chinese OEMs, 68 suppliers, 15 electric-vehicle tech companies, and 13 autonomous-vehicle companies with U.S. operations, mostly in California and Michigan.
“We’ve seen a tremendous shift in how terms have increased,” says Experian’s Melinda Zabritski.
Laurie Foster of Foster Strategies Group recommends F&I managers contact automotive customers before they visit the dealership.