Will you be laid off? The bigger question is "Will General Motors and Ford go bankrupt?"
With high interest rates, high auto loan repossession rates, high market saturation, mass layoffs, record credit card debt and a sinking stock market, the problem for the auto industry will not be a chip shortage, it will be a dramatic dip in sales revenue.
Key metrics: 34% of auto loans are sub prime borrowers with an 11% repo rate. Average interest rate is between 8.6% and 22.41%. Monthly payments average $718 to $1000. $1.5 Trillion in auto loans issued in 2022 alone, leaving huge liabilities for banks.
*Average new car price is over $36,000
*Average used car is $20,000
*Auto loan interest rates average from 8.6% to 22.41%!!!
https://cars.usnews.com/cars-trucks/advice/average-auto-loan-interest-rates
*Average monthly new car payment is up 26% since 2019 to $718/month.
*1 in 6 owe $1,000/month for their new car
*Auto repossessions for subprime loans is 11%, 4$ for prime borrowers
https://www.autoblog.com/2022/07/11/car-repossessions-on-the-rise/
*As the auto loans were created in a frenzy of government stimulus checks, the prices of autos scaled up dramatically, leading to longer loans (72 months and higher!)
*34% of auto loans are sub prime borrowers
*Metrics for auto loans are far worse today than they were before the Great Recession
*"Stimulus Ballers" didn't pay rent, collected government stimulus checks and were given loans with no scrutiny
*Sub prime loans from "Stimulus Ballers" were packed and shopped from bank to bank
Will Subprime Auto Loans Trigger The Next Financial Crisis?
https://www.youtube.com/watch?v=okhzUoxaUO0
American Debt: Auto Loan Balances Hit $1.5 Trillion in 2022
https://www.investopedia.com/personal-finance/american-debt-auto-loan-debt/
"I am in the auto industry and this video is spot on! We now have customers financing 96 months and our best rates for 800 credit is currently around 8%."
If you thought your biggest problem was returning to the office, you need to think again!
#learntocoal