Aug 15 2020

Subprime Auto Nation: American Households now Carry $1.34 Trillion in Auto Loans on an Asset that Depreciates While Covid-19 Creates Demand Destruction.

America is literally driving itself into debt. US households now carry a stunning $1.34 trillion in automotive debt. What is troubling about this is the amount of driving taking place has plunged courtesy of Covid-19 and much of our economy is built around driving. People take the morning and evening commute, and this was seen […]

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May 7 2017

Debt Apocalypse: US Student and Auto Loans Hit New Record of $2.6 Trillion.

American consumers are once again spending beyond their means.  Just a few months ago there was a startling headline reporting that US consumers now had over $1 trillion in credit card debt outstanding.  That seemed astonishing in itself but now looking at debt levels in other sectors we find that auto loans outstanding are also […]

Mar 26 2017

Subprime auto loans face mounting problems: With $1.1 trillion in loans outstanding we all know bad deals are made in good times.

Exuberance breeds bad decisions as inhibitions and due diligence get tossed out the window like dirty water.  This is exactly what is unfolding in the rampaging auto market.  The latest data from Fitch Auto ABS Indices shows that 60+ day delinquencies for subprime loans are now at 5 percent of all outstanding balances.  This is […]

Dec 11 2016

Welcome back debt! Total household debt rose by $63 billion last quarter pushing total household debt to $12.35 trillion. More than half of the debt increase came through auto loans.

The appetite for debt is now back in a furious way.  Total household debt was up $63 billion last quarter driven largely by auto loans.  Auto loans increased by $32 billion and the amount of auto debt outstanding is stunning.  There is now a total of $1.14 trillion in auto loans floating in our economy.  […]

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