Most of you reading this are probably aware the U. S. auto market is a train wreck waiting to happen, but a recent report by Moody’s really puts the industry’s insane lending practices into perspective.
Reuters reports:
As U. S. auto sales have peaked, competition to finance car loans is set to intensify and drive increased credit risk for auto lenders, Moody’s Investors Service said in a report released on Monday.
‘The combination of plateauing auto sales, growing negative equity from consumers and lenders’ willingness to offer flexible loan terms is a significant credit risk for lenders,’ Jason Grohotolski, a senior credit officer at Moody’s and one of the report’s authors, told Reuters.
Motor vehicle sales have boomed in the years since the Great Recession. U. S. sales of new cars and trucks hit a record annual high of 17.55 million units in 2016.
This post was published at Liberty Blitzkrieg on Monday Mar 27, 2017.
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