I just wanna start with the typical, I’m highly regarded so don’t take anything I say seriously and I have no diarrhea about what I’m talking about.
So tonight at dinner my dad told me that someone he was talking to said that, the Bank of Montreal and some other bank but he couldn’t remember who else but apparently they have stopped doing auto loans.
Now, I’m no mathematician I still use an Abacus but to me that seems like someone is getting stretched thin, and maybe people aren’t paying their auto loans. This reminded me what happened in the big short. I remember they were giving anyone and everyone a house, then people couldn’t pay their mortgages and we all know the rest. They give anyone a car loan today it’s super easy and most people get co-signers on them to get a car.
So what I’m thinking is that people are starting to default on their auto loans. This is most likely because of the inflation and the current prices of everything being so much, it’s even expensive to buy the necessities and afford to put a roof over your head let alone pay for a $1000 car payment. I imagine that this isn’t going to stop happening anytime soon with the way the world is. Also I think when people bought cars during the pandemic they were insanely marked up because you couldn’t get a new car so people who needed a car bit the bullet and paid tremendously over price. The thing is, at the time they bought the car, they could pay for it but alot has changed since then. They are paying an auto loan on a 100k truck that should be like a 60k loan.
I wondered if this is the start of the cards falling. What are everyone else’s thoughts?
Remember I’m highly regarded so I’m probably all wrong.
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