October is the first month of the last quarter of 2016, big deal we all know that. Absolutely, and in a few days October will conclude, and we will get an improved overview of how the quarter will develop, the year, and the horizon for 2017.
Its a loaded sentence...lets take a look at the auto business in Canada.
- At the end of the 3rd quarter it remained a record year with signs of a slow down.
- The mortgage rules changed half way in October. What does it have to do with the auto business, perhaps nothing...
- CMS (Citizen Main Street) by now fatigued of powering the Canadian economy.
Are we reaching a pivot point?
- Longer term financing has remained a constant for the past few years.
- The auto business is pulling ahead on the terms and rolling over deficiencies.
- CMS can easily pull back on the terms, and seek an elusive equity position.
In a few days we will have a clearer picture of the landscape.