Some reliable numbers on the automobile marketplace are beginning to emerge, and while they do not point to the end of the world as we know it, they're worth knowing.
According to S&P Global, more than 6% of subprime auto loans were at least 60 days overdue in December, a more significant percentage than during the 2008-09 GFC. ...
Subprime loans are not a significant portion of the auto-loan biz. And they are 'subprime' for a reason.
Here is the part that can migrate upward to 'average' or 'prime' loans:
...Bloomberg reported that auto dealers had noticed an alarming rise in customers who trade in their vehicles with negative equity of $10,000. ...
The word "alarming" above is editorial, and it fits the hair-on-fire nature of ZeroHedge. What IS "alarming" however, is that consumers are trading in their cars after only one or two years, which is a big reason for negative equity. (It's also disturbing that auto-finance houses were doing extremely thin deals in the last few years.)
All that is a straw in the wind. We are not sympathetic to lenders who make loans with crap-for-equity.
What does it mean for you?
There might be some very nice deals on slightly-used cars, if they can be cleaned up well.
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