Is the Dam Ready to Break? Auto Delinquency on the Rise

Scary U.S. Auto Loan Debt Numbers Foreshadow Economic Downturn

Rising U.S. Auto Loan Debt a Symptom of Bubble Economics Permeating Society

Auto industry sales have come back from the “Great Recession” grave, but U.S. auto loan debt threatens to relegate the industry to purgatory. Rock-bottom interest rates have allowed consumers to gorge on debt for too long, setting the stage for the auto loan debt 2017 debacle playing out before our eyes. The bill has come due, and the auto industry is bracing for a protracted retrenchment.

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Subprime Auto Loan Losses Reach Highest Level since the Financial Crisis

Subprime net loss rate in auto bonds rose to 9.1% in January

U.S. subprime auto lenders are losing money on car loans at the highest rate since the aftermath of the 2008 financial crisis as more borrowers fall behind on payments, according to S&P Global Ratings.

Losses for the loans, annualized, were 9.1 percent in January from 8.5 percent in December and 7.9 percent in the first month of last year, S&P data released on Thursday show, based on car loans bundled into bonds. The rate is the worst since January 2010 and is largely driven by worsening recoveries after borrowers default, S&P said.

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The Next Financial Crisis Might Be in Your Driveway

With late payments on the rise, a dealership upsell begins to look dangerous.

Lured by low interest rates, low gas prices, and a crop of seductive vehicles that are faster, smarter, and more efficient than ever before, American drivers are increasingly riding in style. Don’t be fooled by the curb appeal, though-those swanky machines are heavily leveraged.

The country’s auto debt hit a record in the fourth quarter of 2016, according to the Federal Reserve Bank of New York, when a rush of year-end car shopping pushed vehicle loans to a dubious peak of $1.16 trillion. The combination of new car smell and new credit woes stretches from Subarus in Maine to Teslas in San Francisco.

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RepoPulse to Hold Free Webinar on State Of Repossession, Auto Finance Industries

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Leading Economist Will Offer Assessment of Current State, What’s On the Horizon

 

FOR IMMEDIATE RELEASE

October 3, 2016 – RepoPulse.com is excited to host a free webinar on Tuesday, October 4 at 1pm EDT to help make sure repossession agents and auto lenders are updated about the state of the auto finance and repossession industries, from an economic perspective.

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Auto Delinquencies Continue to Climb

usd_car_lotDetroit, MI, 30 September 2016 – The delinquency rate on subprime auto loans rose in August, and a credit rating agency that monitors the market said the trend likely will continue through the rest of 2016 as prices of used cars continue to fall.

The delinquency rate has been trending upward throughout 2016 and now approaches peak levels seen in late 2008 and early 2009.

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