People thought they were buying cars during the pandemic. A lot of them were really buying seven years of debt wrapped around a depreciating asset.
Now car values are falling, borrowers are upside down, delinquencies are climbing, and repossessions do not always erase the remaining loan.
This goes way deeper than somebody having a high car payment. We could be watching the warning signs of 2008 all over again—except this time, the bad loans are sitting in people’s driveways.
