Protect your credit union from car market volatility
Some members may manage rising costs by cutting their auto insurance. Here are options for mitigating this risk.
The last two and half years have revealed flaws in the just-in-time and as-needed production approaches used in many industries. Additionally, inventory supply and demand were shifted drastically as many of us moved to a work-from-home environment. Earlier predictions manufacturers had for 2020 and beyond were incorrect. Hindsight is always 2020.
Solutions take time, resources and money, and this inevitably leads to rising costs in the immediate and near future. In other words, the options industries have are to either 1) wait it out and raise prices to compensate for current conditions or 2) initiate a change in their supply chain methods and raise prices to compensate for the costs of development. Either way, prices are inflating and will continue to rise. We know that those directly impacted by inflation (including all lower- to middle-class Americans) alter their consumption, investment choices and spending habits in response.
The biggest blind spot: The average American cannot fulfill their daily needs without a car
Economic stimulus tactics are now a thing of the past and the grace periods many lenders implemented on auto and other consumer loans have also ended. At the same time, more employees have returned to work and again must bear the cost of gas, transportation, childcare and workplace commutes.
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