The Car Loan Bubble Just Popped (HUGE Recession Indicator)
To start comparing quotes and simplify insurance-buying, check out Policygenius: http://policygenius.com/whiteboardfinance. Thanks to Policygenius for sponsoring this video! The Car Loan Bubble just popped, which is normally a BIG recession indicator. Car repos are exploding which usually signals the start…
To start comparing quotes and simplify insurance-buying, check out Policygenius: http://policygenius.com/whiteboardfinance. Thanks to Policygenius for sponsoring this video!
The Car Loan Bubble just popped, which is normally a BIG recession indicator.
Car repos are exploding which usually signals the start of a recession. This is a leading indicator, not a lagging indicator.
“Loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%”
There are $1.42 Trillion in auto loans, making it the 3rd largest consumer credit market in this country.
Average credit of borrowers has declined which is increasing the risk of default on these car loans.
46% of loans are underwater, meaning people owe more on the car than what it is actually worth.
New auto loans skyrocketed after multiple rounds of stimulus, which brought Q2 of 2021 up to $220 Billion worth of total originations.
There are three big factors to understand why the car loan bubble popped, which we will get into this video.
Thanks for watching and please share this video!
🔥 WBF University – Join My School Here:
📈 Get 5 FREE Stocks: https://whiteboardfinance.com/go/moomoo (Worth up to $3,500)
Fundrise – Invest In Real Estate For Only $500:
My FREE M1 Finance Training Video:
My FREE Stock Market For Beginners Guide:
GET MY HOME AFFORDABILITY SPREADSHEET HERE:
FOLLOW ME ON INSTAGRAM:
⏰ Timestamps ⏰:
0:00 – LIVE CALL WITH REPO AGENT
2:04 – Intro
2:32 – Car Repos Are Exploding
3:02 – $1.42T Auto Loan Market
3:45 – New Loans Skyrocketed After Stimulus
5:03 – Credit Scores Are Getting Worse
6:00 – The Automotive Recession Is Here
7:00 – Policygenius Spot
8:12 – Car Prices Reaching Equilibrium
13:01 – How Can You Benefit?
14:17 – My Thoughts.
17:46 – LOL
Instrumental Produced By “iAmHaywood” on IG
ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
Subscribe if you are interested in:
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.