If you frequent these pages (and why wouldn’t you?), you’ve read a lot about subprime auto over the past month.
Here are some of the relevant posts:
- As Subprime Auto Bubble Bursts, Lenders Use GPS To Hunt Deadbeat Borrowers
- A Dubious New Record
- Subprime Auto Loans Might Be Ok Because After All, People Need Their Cars
Well for those interested in an idiot-proof assessment of just how endemic this problem is becoming, look no further than the following chart from Wells Fargo which shows that subprime auto debt as a percentage of GDP hasn’t been this high since at least 2009:
Just a few more quarters and we’ll be right back to pre-crisis levels.
If you don’t have the credit to buy a house, you can at least get a car. I think that we’re going to exceed the past bubble on these by a good distance. Unless we see Trump loosen up sub-prime home lending for us.