Delinquencies on Subprime Auto Loans Rise Above Financial Crisis Levels

Delinquencies on Subprime Auto Loans Rise Above Financial Crisis Levels

Subprime auto loans are in arrears at higher rates than any time during the past 20 years, including during the 2008-09 financial crisis, as reported by Fitch, a rating agency, and Santander, a major bank. However, prime auto loans and other consumer debt are not at high rates of delinquency as happened during the financial crisis so this does not appear to reflect broad financial distress.

Skeptic
Skeptic
Jeff Fisher
Jeff Fisher 3 months

I work for one of those supprime used car dealers in the IT Department. The first link is for Texas where we have around 15 lots out of 150 total. It is amazing how many cars sold there end up south of the border within a month and sold to people who have been dead for decades (stolen ID). There is always more to the story...

Crimson Jester
Crimson Jester 3 months

No one learned from the last time?

Jesse
Jesse 3 months

We are so screwed and this upcoming crash is going to be a disaster

Ken
Ken 3 months

So, people not making enough, are buying vehicles, on average, for $23k. Why? I bought a used SUV for 10k and I'm doing well in my career. The article talking about how 1/3 of the state is only making $24k which can't support a family of four...well why would you have a family of four while only making that little? You have to be a complete moron to put you and your family in that position. And then, to make things worse, if you're only making that little, you have to be retarded to finance a vehicle more than $5k on that money. Also, vehicles cost more because of Obama's "Cash for Clunkers" crap, as it took away vehicles, which brought up demand, and now all vehicles have gone up in price.

FoxStar
FoxStar 3 months

Here it comes! The house of cards that Obama and Trump created is about to come falling down!

RedPilled
RedPilled 3 months

People could live within their means and easily buy long lasting used cars for less than $10K, but hey let's blame this on low wages.... we're all just victims apparently

Petri Fide
Petri Fide 3 months

Seriously??? We are doing the subprime shit again?

IvoryDove
IvoryDove 3 months

Giving people who don't deserve credit because the government will cover the loss... Who could have seen this coming?

Katharine
Katharine 3 months

I didn't know they make cars there.

Miles O'Brien
Miles O'Brien 3 months

Housing will be next.

Top in Business
Get the App