Latest Online Edition  Read Here

THE GOOD FIGHT: Paul John, executive director of the Georgia Independent Automobile Dealers Association, discusses how the association fought against state legislation that would have raised the taxes on used-car purchases.

Under the Surface, Many Consumers Struggle with Finances

Under the Surface, Many Consumers Struggle with Finances Featured

While most economic indicators, from the official unemployment rate to the Dow Jones Index, point in a positive direction these days, many consumers still struggle with financial challenges

That’s the findings of a pair of recent surveys.

One of these, the Consumer Financial Stress Index from LegalShield, worsened to 90.8 from 90.4. This follows a 3.4 point increase in August.

The Index provides a read on the well-being of consumers based on the demand for certain legal services.

Though consumer finances are generally healthy, the Index predicts that spending will decline in coming months, said James Rosseau, LegalShield's chief commercial officer.

"Consumer spending accounts for a huge portion—more than two-thirds—of the U.S. economy," Rosseau said. "Although we're not expecting a poor retail season ahead, decision makers who are counting on a banner year for retail spending might be disappointed."

The LegalShield findings come on the heels of a negative report from the Consumer Financial Protection Bureau on the state of consumers.

Results from the CFPB’s national survey on the financial well-being of U.S. consumers that showed that more than 40 percent of U.S. adults struggle to make ends meet. 

Of the nationally representative sample of consumers surveyed, 43 percent of consumers report struggling to pay bills. Additionally, over one third – 34 percent –of all consumers surveyed reported experiencing material hardships in the past year. 

Last modified on Tuesday, 10 October 2017 19:09
Rate this item
(0 votes)

Related items

  • Interest Grows in Full-Size Luxury Sedans

    Jumpstart Automotive Media, a media insights and marketing solutions company, released its monthly share of shopper interest data. The report reveals that shoppers are showing more interest in vehicle segments such as full-size luxury sedans, and soon-to-be-released models are generating excitement among shoppers.
    During September, shopper interest in full-size luxury sedans grew 15 percent. The alternative fuel segment continues to lead all other categories in shopper interest growth since January at 38 percent, particularly led by interest in Tesla, which is second in overall brand shopper interest at 141 percent on the year (behind Genesis at 146 percent).

  • Automaker Redesigns CPO Website

    Capitalizing on the growing popularity of its pre-owned vehicles, Acura debuted a completely redesigned Certified Pre-Owned vehicle website that simplifies Acura’s online CPO vehicle shopping process, offering shoppers the ability to compare vehicles and features and share their selections with friends and family. The new Acura CPO site makes inventory the primary focal point for shoppers, introducing a new vehicle alert feature for the most up-to-date vehicle availability.
    The updated site also features a new vehicle recommendations tool and an interactive payment calculator to help potential customers find vehicles within their budget, along with a seamless browsing experience on any device.

  • New Book Looks at Future of Auto Retail

    Dale Pollak, founder of vAuto, has released his fourth book, “Like I See It: Obstacles and Opportunities Shaping the Future of Retail Automotive.”

     In a press release, Pollack stated he hadn’t planned on writing a fourth book, but circumstances in the retail automotive industry changed his thinking.

    “Our industry is confronting a challenged and uncertain future,” Pollak says. “I felt like I had an obligation to bring voice to topics that too few in our industry want to talk about. My hope is that Like I See It spurs recognition that a prosperous and viable future for the car business will only arrive if we collectively begin the transformative work to shape this future today.”

    In the book, Pollak devotes chapters to margin compression, increased OEM control and financial reliance of their dealer partners, dealer network consolidation, technology disruption, vehicle production inefficiencies and consumer preferences for digital retailing.

CarMax Attempts to Keep up with Changing Tech Demands

CarMax Attempts to Keep up with Changing Tech Demands

During the most recent CarMax Inc. quarterly earning call, Morgan Stanley analyst asked an audacious question: “Could CarMax be Amazon’s Whole Foods of automotive retail?” Jonas is none for his...

Dealers Use In-House CRM to Drive Sales

Dealers Use In-House CRM to Drive Sales

Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have...

  • CarMax Moves into New Market
    CarMax Moves into New Market CarMax Inc. celebrated the grand opening of its first store in Michigan, located in Kentwood at 4431 28th Street. The Kentwood store will have the capacity to stock approximately 200…
  • DMS Incorporates Carfax
    DMS Incorporates Carfax Auto/Mate Dealership Systems has integrated its dealership management system with myCarfax Service Shop tools to help their dealer customers increase the success of their fixed operations. This enhancement makes it…
  • CarMax Grows in California
    CarMax Grows in California CarMax Inc. is currently hiring more than 40 associates for the company's third store in the Bay Area of California. The store, scheduled to open in November, will be located…
  • CarMax Opens Store in Northeast
    CarMax Opens Store in Northeast CarMax Inc. celebrated the grand opening of its new store in Albany, N.Y.The store is located at 1860 Central Ave. The Albany CarMax has the capacity to stock approximately 200…
  • CarMax Reports Higher Sales, Revenue
    CarMax Reports Higher Sales, Revenue CarMax Inc. reported higher sales and revenue for the second quarter ended Aug. 31. Net sales and operating revenues increased 2.9 percent to $4 billion. Used unit sales in comparable…
  • TV Host Takes Cheap Shot at Dealers
    TV Host Takes Cheap Shot at Dealers The latest attack on subprime automobile dealers came in the form of HBO’s satirical news/comedy show “Last Week Tonight with John Oliver” on Aug. 14. The 17–minute segment slammed the…

    Auto Lending: Last Week Tonight with John Oliver (HBO)
  • Carvana Moves into Midwest
    Carvana Moves into Midwest Carvana announced its expansion into Columbus, Ohio. This launch marks the company’s first market in the Midwest region and first in the state of Ohio. Columbus marks Carvana’s seventh new…
  • America’s Car-Mart Moves Fewer Units
    America’s Car-Mart Moves Fewer Units America’s Car-Mart Inc. reported net income of $7.1 million in the quarter ended July 31.The buy-here, pay-here chain reported revenues of $146 million compared to $143 million for the prior…
  • Carvana Partners with Credit Union
    Carvana Partners with Credit Union Carvana has partnered with LGE Community Credit Union. Through the partnership, LGE members can browse Carvana's online inventory of vehicles and purchase a car and have it delivered to them…
  • Dealers Use In-House CRM to Drive Sales
    Dealers Use In-House CRM to Drive Sales Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have…