Going Bankrupt | The Car Market Bubble Just Collapsed

Sign Up Today For Experian: http://www.experian.com/save | Lets talk about the worsening car market bubble, why the loan industry is about to implode, and what this means for used car values – Enjoy! Add me on Instagram: GPStephan

SOURCES:
Your Automotive Alliance: https://www.youtube.com/c/YourAdvocateAllianceYAA
Lucky Lopez: https://www.youtube.com/c/AutomotiveLifeTV

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THE USED CAR BUBBLE:
Under current law, dealers are allowed to keep a portion, or ALL of their interest-rate markup AS LONG as the buyer makes payments on their car for the first 3-6 months…and, over the last few years…subprime borrowing has seen a MAJOR comeback…sometimes with interest rates as high as 20%.

Bloomberg noted that “as many as one in five auto-loan borrowers admitted in a survey that their applications for debt contained inaccuracies, meaning fraud could be more pervasive than lenders planned for.”

This basically implies that – NOT ONLY are lenders and dealerships turning a blind eye to income and employment verification for the sake of issuing a loan…but, 20% of CUSTOMERS are also LYING about their financials just to drive off in a new car.

All of that is to suggest that: in the event of a severe recession, where we see continued unemployment, and ongoing inflation…borrowers will absolutely begin to fall behind at a faster and faster pace…leading to lower prices, and – eventually – universal regulation around the auto loan industry…which, frankly, seems past due.

The thing is, unlike investments…MOST PEOPLE aren’t speculating on car values, and they simply need a mode of transpiration from A-to-B…so, it’s probably not even worth it for 95% of the population to sell and try to buy back cheaper…and, when you have a car that runs and drives…it’s probably best to keep driving it.

But, if you’re in a position where you’re locked yourself into an unaffordable loan – and, can GET OUT OF IT for something cheaper – now might be a good time.

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