The auto loans market is a potential flashpoint in 2023

It doesn’t take deep analysis to see what’s coming in the car market. During the pandemic, car sales increased and people overpaid. Now the bills are here and governments are no longer lining the wallets of consumers. Plus, interest rates are rising, so people who already tend to borrow too much (like many car buyers) feel pressured around every corner. Some try to offload used cars, but their fortunes quickly deteriorate and suddenly the used car market is saturated. More pain to come. But @cardealershipguy also has an interesting thread where he says that lenders offer second car loans to people who can’t afford their first car. „I was a skeptic, but after what I saw this morning, I am now ABSOLUTELY convinced that there will be a wave of auto repossessions in early/mid 2023. If lenders are willing to stab each other to get more money. according to the loan road, we’re in trouble.” It’s not going to end well.”