US Subprime Auto Loan Delinquencies Levels At 20 Year Highs @creditmacro
A month back whilst going through some US banking sector charts I came across the below unassuming, un-highlighted chart..
US subprime auto loan 60-day delinquencies levels
So US subprime auto loan 60-day delinquencies levels are at 20 year highs whilst we are in a “full employment” and a low rate environment…
Worth looking in to and putting some thoughts together.. now I am by no means an expert so any thoughts feel free to put at bottom or ping me a message @creditmacro .. so here goes…
In these type of situations I always find charts or bullet pointed stats say a million words:
- ~86% of new vehicles have financing on them
- 43% of non-prime (that’s the new name for sub-prime) are millennials
- average payment time has reached new highs- people are having to extent the contracts out longer to be able to afford the payments
- whats more..longer loans, those with terms lasting 73 to 84 month account for a record-setting 29.5 percent of all new vehicles financed
- increasing willingness to finance on Used Cars
- whilst average credit score is on downward trend… so thats a move to lower asset quality AND lower credit score
- average used vehicle loan is increasing.. more people extending themselves
This content is exclusively for paying members of Hedge Fund Alpha
Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha
Don’t have an account?
Subscribe now and get 7 days free!
