Valuetainment “3 MILLION Cars Will Be Repoed” - Will America's Auto Debt CRISIS Trigger The Next Recession?
Nov 13, 2025
Car repossessions are soaring, with over 3 million vehicles at risk by 2025. The podcast delves into how extended auto loans trap consumers into paying thousands more in interest. It draws chilling parallels to the 2008 mortgage crisis, highlighting the dangers of subprime loans and rising defaults. Insights on the impact of inflation and used-car shortages reveal why these loans are now precarious. The discussion emphasizes the importance of loan prudence over merely focusing on monthly payments.
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Repo Wave Echoes 2008
- Car repossessions are surging and could exceed 3 million in 2025, the highest since the financial crisis.
- Subprime borrowers show rising 60+ day delinquencies, exposing weakness beneath market optimism.
Used-Car Boom Hid Deeper Risk
- Used-car price inflation and chip shortages pushed many buyers into expensive loans that are now going bad.
- The situation mirrors securitization risks where collateral loses value while loans stay on books.
Concentrated Lenders Amplify Shocks
- Securitized auto-loan structures and concentrated players can amplify shocks when collateral values fall.
- Past examples like Tricolor show how financing firms can trigger wider market stress when defaults rise.
