There is a lot of talk out there about the auto-loan market right now.
Hedge fund manager Jim Chanos has said the auto-lending market should "scare the heck out of everybody," while the auto-lending practices of some used-car dealerships has been given the John Oliver treatment on TV.
It's a topic we've been paying attention to as well. In a presentation in September at the Barclays Financial Services Conference, Gordon Smith, the chief executive for consumer and community banking at JPMorgan, set out some eye-opening statistics on the market.
Now the New York Federal Reserve is taking a closer look at the market. In a blog published Wednesday on the New York Fed's Liberty Street Economics site, researchers highlighted the deteriorating performance of subprime auto loans and set off the alarm.
"The worsening in the delinquency rate of subprime auto loans is pronounced, with a notable increase during the past few years," the report said.
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7 comments:
no its just a boom for the repo industry
Who can pay for a 30 or 40k loan on a new car? I can't! That why I am forced to find a late model car with low miles in good shape and pay what a new car used to cost! It's bad enough to finance a car for 5 years, but some people are financing to 6 or more years and owe more than the car is work as soon as you drive it off of the lot. Until incomes go up, I think you will see more and more of this. I for one will just keep my old clunker maintained and repaired. It is truly sad. I am hopeful that Trump will help to turn things around.
9:10 and the used car industry...
Just make sure that you get the locks changed if you buy one!
Taping of new shows began back in September....ready for broadcast later this winter.
what do you expect from a sleazy industry that never changes.
pathetic that you have to rip people off to sell your product.
the whole industry needs an overhaul.
I have never met anyone in the auto business that wasn't a POS lying bag of dog poop.
9;32 you are correct. Smart move on your part. I've done the same thing for 50 years.
I just financed a new truck for 4 years and the finance mgr said you know you can finance it for 7 if you want, maybe even 8. Pretty soon they will be calling it an auto mortgage
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