![]() ![]() Cars are credit-based purchases so the health of the banking sector matters. TheĬar stocks are trading a little like bank stocks these days. Ford and GM shares were both up roughly 5% in midday trading. The Fed survey deals with February data, rather than focusing on what happens next, so it isn’t affecting car stocks Tuesday. The stock market, however, always looks forward, so car stocks should hit bottom before that. It could be hard for car makers to do better until credit metrics improve. The 35 auto stocks in that index are down about 40% from their 52-week highs on average. Has slipped to near 50% from about 54% at the start of 2022. And the average Buy-rating ratio for all cars-related stocks in the Earnings estimates for 2023 have fallen by about 13%, on average, over the past three months. (F) stock is off about 31% from its 52-week high, whileĪnalysts are getting more bearish. Some of that is already reflected in automotive shares: The result of all this likely to be more uncertainty and volatility for car manufacturers. But used-car car values are still more than 50% above prepandemic levels. The Used Vehicle Value Index is down about 5% year over year and off about 7% from its record highs. Relatively few cars were being made or sold as the pandemic struck in March 2020, so not many three-year-old vehicles are hitting the used-car market today. Supplies of used cars seem to be behind that. In March, the Manheim Used Vehicle Value Index rose by almost 2% compared with February, the third consecutive monthly increase. Values for used car, meanwhile, are holding up. That’s the highest that percentage has ever been, according to data provider Edmunds. More than 15% of consumers that financed a vehicle in the fourth quarter of 2022 are paying more than $1,000 a month for their car loan. Most car companies expected new-car prices to decline from record levels in 2023 as interest rates increase. ![]() It’s the third monthly decrease for new car prices. came in at $48,763, down $705 from January. ![]() For February, the average price for a new vehicle in the U.S. Mechanics Bank is a Member FDIC institution and Equal Housing Lender.Stress on consumers is showing up in new car values. Mechanics Bank received a rating of “Outstanding” from its primary regulator, the Federal Deposit Insurance Corporation (FDIC), for its most recent Community Reinvestment Act (CRA) examination period of May 2016 through April 2019. Mechanics Bank provides a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, cash management services, and comprehensive trust, investment and wealth management services. Today, Mechanics Bank is one of the largest California-based banks and continues to earn its reputation as a successful and trusted financial partner committed to helping consumers, businesses and communities grow and prosper. It was founded in 1905 to assist the area’s local businesses and families and has remained focused on building lasting customer relationships throughout its storied history. Mechanics Bank is an independent, full-service community bank headquartered in Walnut Creek, Calif., with more than $17 billion in assets, a best-in-class deposit franchise and 131 branches. “Operating as Mechanics Bank Auto Finance will afford more clarity in the auto-finance marketplace, and fortify our identity as a trusted name in financial services - a brand known for its exceptional capital strength.” “We’re still the same proud organization committed to delivering outstanding auto-lending expertise to our dealers and their customers,” said Bill Katafias, Chief Executive Officer of CRB Auto. A division of Walnut Creek, Calif.-based Mechanics Bank since October 2016, the indirect-auto-lending unit serves approximately 2,000 auto dealerships in 19 states from coast to coast. CRB Auto has officially changed its name to Mechanics Bank Auto Finance. ![]()
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