Due to the COVID-19 pandemic, U.S. auto sales had a very unfortunate year in 2020, down around 15% from 2019. Luckily, early forecasts predict that the market will bounce back somewhat it 2021, with a growth of around 7% to 10% compared to 2020. Typically, we see an increase in auto purchases after tax season, especially on Presidents’ Day weekend, though with the pandemic still raging across the U.S., this period may be less profitable than usual.
Despite the lackluster auto market last year, consumer auto debt still increased. According to the Federal Reserve Bank of New York’s latest report on household indebtedness, auto-loan balances have grown over the past nine years, increasing by another $17 billion in Q3 2020.