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Thank You Fed: North America Leads Rolls Royce To Record 12% Surge In Sales In 2014
Because nothing says "recovery" like the record-breaking surges in sales of Rolls-Royce luxury vehicles juxtaposed by the highest level of auto loan delinquency since the 2008 crisis peak...
On the one hand... (as MarketWatch notes)
Rolls-Royce Motor Cars posted a 12% increase in 2014 global sales, hitting a record 4,063, and the company's chief executive expects more growth in 2015 as demand for highly customized luxury sedans grows.
...the auto maker is contributing "significantly" to parent BMW AG's profits, says Torsten Müller-Ötvös, CEO of Rolls-Royce Motor Cars, in an interview Tuesday following the release of sales figures.
...the average car sells for more than $250,000 and often much higher as buyers heavily customize their vehicles, leading to healthy margins.
Indeed, the so-called "bespoke" customization of its vehicles has become the key enticement for customers.
Mr. Müller-Ötvös said customers fly into the Goodwood, England headquarters and start the ordering process months in advance of receiving their vehicles. Some customers even have the cars flown home with them.
Customers have had thousands of tiny LED lights installed into the ceiling of cars to reflect the constellation on the day of their birth--accented with diamonds. That is in addition to things like cigar humidors and refrigerators that are de rigueur in super luxury cars.
To increase its capabilities, Rolls has added 200 workers in 2014 to work on customization. The company has 1,500 total employees in Goodwood.
North America was Rolls Royce's biggest market, but a dealership in Abu Dhabi was its top seller. With 127 dealerships globally, most retailers sell only a few dozen cars a year.
Borrowers who took out auto loans over the past year are missing payments at the highest level since the recession, fueling concerns among regulators, analysts and some in the car industry that practices that helped boost 2014 light-vehicle sales to a near-decade high could backfire.
“It’s clear that credit quality is eroding now, and pretty quickly,” said Mark Zandi, chief economist at Moody’s Analytics.
More than 2.6% of car-loan borrowers who took out loans in the first quarter of last year had missed at least one monthly payment by November, the highest level of early loan trouble since 2008, when such delinquencies rose above 3%, according to an analysis of data performed for The Wall Street Journal by Moody’s Analytics.
The uptick comes amid an increase in subprime auto loans, raising concerns that car buyers may have taken on more debt than they can handle. For that set of borrowers, defined as consumers with a credit score lower than 620, loan performance also is deteriorating.
More than 8.4% of borrowers with weak credit scores who took out loans in the first quarter of 2014 had missed payments by November, according to the Moody’s analysis of Equifax credit-reporting data. That was the highest level since 2008, when early delinquencies for subprime borrowers rose above 9%.
...
Of the 15 biggest U.S. auto-lending banks, Santander had the largest percentage of delinquent auto loans in the third quarter, according to SNL Financial. Santander’s delinquency rate of 16.7% was followed by Capital One at 6.6%, according to SNL.
Of particular concern are loans in which car dealers push financing at extended terms of six and seven years at relatively high interest rates, even if the borrowers have weak credit and escalated debt-to-income ratios. The longer loan terms keep monthly payments under control and get buyers to purchase more expensive cars.
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Nope - no inequality problem here at all.
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Duesenbergs were 250 bucks after the 29 crash
I've owned several Rolls Canardlies, rolls down the hill and can hardly make it back up the other side.
"Duesenbergs were 250 bucks after the 29 crash" one year AFTER the Fed raised interest rates. This time it is ctl prt all the way to the bitter hyperinflation end.
"This time it is ctl prt all the way to the bitter hyperinflation end."
It's the way the Federal Reserve want's to end it this time.
The plan from the start was to take everyones gold and give them dollars, and then to wipe out the dollar. They knew it would be incremental from start to finish; from FDR's confiscation, to Nixon's window, to Obama's crtl P.
250 bucks in 1929 was STILL a hell of a lot of money. Most people were making under $1000 a year - many under $500.
So when does QE happen again?
Wake me up when I can get a McLaren for $250 on eBay.
Oooo.... Make mine a Lamborghini pleeze!
Excellent point.
And the Federal Reserved transferred it from the savers to the traders.
The Federal Reserve has people believing gold doesn't matter anymore.
Wait until it's revealed that China now has the Federal Reserve'as gold.
VERY visible targets for the torches and pitchforks crowd. Ostentatious displays of wealth are just asking for it.
I wonder how many 'customizations' include bulletproof glass, armor and roll flat tires?
I have known personally people who had a lot of money in their lives at one time, knew them when they had it and after they lost it.
It is a wake up call. May as well enjoy the Rolls folks, who knows how long you are going to keep it.
And Charles Evans , Dudley and rest should be held accoutable for the end result.
Just another piece of the ill-fitting jigsaw which we want to call a functioning society and economy.
Good luck to those that buy them. They constantly live in fear of where they park them or who might scrtach them.
Great garage display piece though.
I must say however, tis far better that the top end spend something back into the economy rather than simply pushing up asset prices to obscene levels.
When do we get this shit here from dear leader?
http://www.bloomberg.com/news/2015-01-09/venezuelans-throng-grocery-stor...
Seriously, they are still operating? I thought Rolls had been sold off to the Chinese. Or was it Indians? Have they solved all the quality problems Rolls Royces were plagued with?
You buy the image.
You buy the Image AND depreciate the cost against the taxpayer.. Fixed it for you
LOL...what "image" would that be?
Tata Motors (IND) purchased Jaguar and Land Rover. My personal experience is the Range Rover HSE has improved since this purchase.
Main street is stoked.
“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. . . . corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.” U.S. President Abraham Lincoln, Nov. 21, 1864
(letter to Col. William F. Elkins)
Obama will get you one of these " Rolls " and some FREE years in College ..... everything thing can be FREE if you follow Obama for life ... O Shining Leader !
I am certain the folks working for Rolls Royce in GoodWood, West Sussex, England
The end user
The delinquent rate is high because the lending standards are lax. Mass-production car companies survive on volume since their margins on a per car basis are tight. On the other hand, one never hears of "Channel stuffing" and "Rolls Royce" in the same sentence.
Takeaway from article: Santandar
has great credit standards
Probably those freaking babyboomers
http://i.imgur.com/NyLx1fy.png
If I ever get real rich, I hope I'm not real mean to poor people, like I am now.
But what about our relationship?
Fuck that!
Nothing says "I AM TRASH" like owning a Rolls...