In the auto loan market both delinquencies and the total amount of outstanding auto debt continue to rise. With the total debt now breaching $30 billion and Goldman causing a stir last week when it dedicated airtime to suggesting people take out a last week car loan we are increasingly reading about the subprime auto bubble peaking. Last week CNBC added its voice to the concerns saying that the risking inherent in the subprime market are materializing and that at the margin, growth has been created by lowering credit standard and extending terms to a whole load of “new” auto buyers. Given all of that, we were shocked — shocked — when February auto sales turned out to be a BNSF-style trainwreck ( Zero Hedge 5-Mar-15Talk Markets 8-Mar-15
In the auto loan market both delinquencies and the total amount of outstanding auto debt continue to rise. With the total debt now breaching $30 billion and Goldman causing a stir last week when it dedicated airtime to suggesting people take out a last week car loan we are increasingly reading about the subprime auto bubble peaking. Last week CNBC added its voice to the concerns saying that the risking inherent in the subprime market are materializing and that at the margin, growth has been created by lowering credit standard and extending terms to a whole load of “new” auto buyers. Zero Hedge 5-Mar-15Talk Markets 8-Mar-15