Unprecedented times brought on by the coronavirus pandemic called for unprecedented support. As the positive impacts of the stimulus fade, the automotive finance industry — among others — is calling for another round.
The swift actions taken at the onset of the pandemic through the passage of the CARES Act were impactful, if short-lived, in terms of the ongoing crisis. After significant government-facilitated stimulus in March and April, incomes rose for U.S. households even while unemployment levels peaked. Consumers had more money in their pockets; deposits and savings accounts at commercial banks surged $1.6 trillion from the end of February to mid-July, according to Cox Automotive.
Because of the extra cash and government unemployment benefits, auto loan performance has been positive. But without more assistance, auto lenders are concerned about the long-term impacts the virus will have on customers' ability to repay their auto loans.