The Auto Loan Apocalypse Is Coming
The automotive market is experiencing a bubble driven by dealer markup practices and loose lending standards rather than genuine supply shortages, with chip availability proving abundant.summaryLending Standards Collapse: During the pandemic, banks relaxed underwriting significantly, allowing loans up to 170% of the vehicle's Loan-to-Value (LTV) ratio by bundling paper and selling it to hedge funds without proptakeawayMarket Correction Timeline: The speaker predicts a 20-30% dip in car values over the next 3-6 months, driven not by price drops alone but by the inability of consumers to qualify for financing as banks tighten standards.takeaway














