Should we all be concerned about this?

[Mike Terry]

I guess these people become renters if they aren't already.  Does this increase in subprime auto defaults signal warning signs for housing?  Please let me know your thoughts.

https://seekingalpha.com/news/3432369-auto-loan-de...

[Charles Soper]

This has been on my radar for the last 18 - 24 months or so.  I forget where I first heard about it but much like people doing stated income nothing down mortgages 10+ years ago, auto loans are the new sub-prime market waiting to burst.  For many years you've been able to drive through a C or D neighborhood and see a run-down shack with a Mercedes, Lexus, or Tesla out front, at least in the AZ and FL suburbs where I've lived in the last 10 years.

Good news for those that will be in the market for a nice car in the next few years, they'll be available for pennies on the dollar!