Where Can the Automotive Industry Go From Here?: Part One
Investing Insights
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The Subprime Lending Bubble in Auto Loans
The Federal Reserve started raising interest rates in March 2022 to fight inflation. Barring costs have gone up, could we see an auto bubble? Well, I've been of the opinion for a long time that there is no subprime lending bubble in auto loans. There are 84, even 96-month car loans out there, but it's not a huge mix. We're going to say a 30-year auto loan just makes zero sense because of the collateral profile and question.
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