Auto Deflation Arrives: GM “Aggressive Discounting” Raises “Clear Cyclical Concerns”

“We’ve noted individual automakers increasingly engaged in aggressive discounting. GM is suddenly standing out in this regard with incentives up $1,350 per vehicle.”

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More Trouble In Used Car Land: Prices Drop Most Since Crisis Sparking Deflation Worries

“We’ve grown increasingly concerned about U.S. Used Vehicle Pricing down 7.7% yoy during February, per NADA. A decline in used prices has been widely anticipated given a significant increase in used vehicle supply (off-lease vehicles). But the magnitude of the recent drop was nonetheless surprising (February’s drop was largest recorded for any month since Nov. 2008).”

There’s Trouble In Used Car Land

As regular readers are no doubt aware, we’ve been pretty keen on documenting the bubble that is subprime auto loans. In “As Subprime Auto Bubble Bursts, Lenders Use GPS To Hunt Deadbeat Borrowers,” we drew your attention to “DriveTime” and “Credit Acceptance,” highlighting the rather unnerving fact that both companies “have been using technology like ignition…

Chart Check: Subprime Auto Delinquencies Near Crisis Levels

Over the past several weeks, I’ve documented what looks to be the beginning of the end for the subprime auto bubble. For the most comprehensive treatment, I suggest you have a look at “As Subprime Auto Bubble Bursts, Lenders Use GPS To Hunt Deadbeat Borrowers.” The short version is that there are a whole host…

Chart Check (A Dubious New Record)

On Wednesday evening, I brought you “As Subprime Auto Bubble Bursts, Lenders Use GPS To Hunt Deadbeat Borrowers.” In it, I outlined prevailing trends in subprime auto lending and highlighted what I hope was some useful color from Morgan Stanley on the state of the market. I also flagged some of the rather dubious practices DriveTime…

Is The Subprime Auto Loan Bubble Bursting?

If you’ve followed the subprime auto story over the past couple of years, you’re probably well aware that the Santander Consumers and Skopos Financials of the world have been using the securitization market to offload credit risk associated with making auto loans to borrowers that, in some cases, have no credit score at all. I’m…