Join Date: Feb 2001
Location: The Hills of North Georgia,USA
U.S.A.:Ford Motor: Repossessions fell in Jan., Feb.
NEW YORK -- A Ford Motor Co. unit on Tuesday said car repossessions fell in January and February, in the latest sign that consumer credit quality is starting to improve.
Ford Motor Credit Co., the finance arm of the nation's second-largest carmaker, repossessed 18,000 cars in January from people who didn't make their monthly payments, down from 19,000 in the same month last year, and 15,000 cars in February, down from 17,000 a year before, Ford said at an investor meeting.
The percentage of customers more than 60 days delinquent on their loans also fell, to 0.26 percent in January and 0.21 percent in February from an average of 0.42 percent in the first quarter last year.
With improving credit quality, Ford Credit said it was likely to reduce its loan loss provisions, which are upfront hits the company takes against earnings for expected losses from loans.
Improving loan performance is likely to be a positive for Ford's earnings this year, said Rod Lache, a stock analyst at Deutsche Bank in New York.
Because the company has some discretion as to when it reduces loss provisions, it is hard to estimate when and by how much the company's earnings will benefit, Lache said. Lache does not own shares of Ford.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....