Uber appears ready to sell its auto-lease business

 Uber appears ready to sell its auto-lease business

https://www.washingtonpost.com/news/the-switch/wp/2017/12/26/uber-appears-ready-to-sell-its-subprime-car-loan-business/

The Big Short 2

  The Big Short 2

https://seekingalpha.com/article/4133310-big-short-2

Subprime Auto Defaults Are Soaring, and PE Firms Have No Way Out

  Subprime Auto Defaults Are Soaring, and PE Firms Have No Way Out

https://www.bloomberg.com/news/articles/2017-12-21/subprime-auto-defaults-are-soaring-and-pe-firms-have-no-way-out

Private-equity firms and hedge funds are getting clobbered by subprime auto loans

 Private-equity firms and hedge funds are getting clobbered by subprime auto loans

uk.businessinsider.com/private-equity-firms-hedge-funds-hurt-by-subprime-auto-loans-2017-12 

PCP time bomb: why your next car could cost you dear

PCP time bomb: why your next car could cost you dear

https://www.parkers.co.uk/car-finance/advice/pcp-time-bomb-why-your-next-car-could-cost-you-dear/

Car leasing companies switch focus to used vehicles

Car leasing companies switch focus to used vehicles

(Google title for article) 

Growth in hire finance schemes driven by slowdown in new car sales

https://www.ft.com/content/3953299c-e0d4-11e7-8f9f-de1c2175f5ce

But as new car sales slow and long-term leases come to an end, industry experts are worried that a glut of used vehicles could soon flood the market, putting downward pressure on prices.

..management at Cox Automotive, which owns Manheim, one of the world’s largest auto auctions companies, have doubts about the viability of used car leasing.

Subprime loans for autos show a big decline as term length hits a record high

 Subprime loans for autos show a big decline as term length hits a record
high

https://www.cnbc.com/2017/12/07/subprime-auto-loans-show-big-decline-as-term-length-hits-record-high.html

U.S. regulator preparing to sue Santander bank over auto loans: sources

 U.S. regulator preparing to sue Santander bank over auto loans: sources

https://www.investing.com/news/stock-market-news/us-regulator-preparing-to-sue-santander-bank-over-auto-loans-sources-910555

The car loan crunch: Help is out there for struggling auto owners

The car loan crunch: Help is out there for struggling auto owners  

www.yakimaherald.com/news/business/the-car-loan-crunch-help-is-out-there-for-struggling/article_1050ce34-cb60-11e7-8fd0-b33811da56c4.html

Auto Loans: A Silent Bubble Continues to Get Bigger

 Auto Loans: A Silent Bubble Continues to Get Bigger

https://www.lombardiletter.com/auto-loans-a-silent-bubble-continues-to-get-bigger/21855/

Auto-Loan Subprime Blows Up Lehman-Moment-Like

Auto-Loan Subprime Blows Up Lehman-Moment-Like  

https://seekingalpha.com/article/4125136-auto-loan-subprime-blows-lehman-moment-like

US Household Debt Reaches Record $13 Trillion: Watch Subprime Auto Loans

US Household Debt Reaches Record $13 Trillion: Watch Subprime Auto Loans

https://www.google.com/url?rct=j&sa=t&url=https://www.forbes.com/sites/zackfriedman/2017/11/14/debt-auto-loans/&ct=ga&cd=CAEYACoUMTgzMTQ0Njk0Mzk2MjA1NDUxMDgyHGUyOTRmNThjYTgxOTBkZTA6Y28udWs6ZW46R0I&usg=AFQjCNGGbAiqChnB7A3h9cbO4wITQ7ImdQ

Cars = Freedom! Until you fall behind in the payments

 Cars = Freedom! Until you fall behind in the payments

https://www.treehugger.com/cars/cars-freedom-until-you-fall-behind-payments.html

6.3 million Americans are 90 days late on their auto loan payments

6.3 million Americans are 90 days late on their auto loan payments 

https://www.washingtonpost.com/news/wonk/wp/2017/11/14/6-3-million-americans-are-90-days-late-on-their-auto-loan-payments/

There are worrying signs in a $200 billion corner of the auto loan market

There are worrying signs in a $200 billion corner of the auto loan market 

http://uk.businessinsider.com/there-are-worrying-signs-in-a-200-billion-corner-of-the-auto-loan-market-2017-11

..In a post out Tuesday, researchers led by Andrew Haughwout highlighted the nearly doubling of the rate of delinquencies in subprime auto loans originated by auto finance companies since 2011. "Since 2011, the overall delinquency rate of loans originated by auto finance companies has significantly deteriorated," the report said. 
The 90+ days delinquent rate for subprime auto loans originated by auto finance companies is up more than two percentage points since 2014, and now stands at close to 10%, according to the report. That's higher than the highest rate following the dotcom crash, and close to the highs in 2009 after the financial crisis.  ..

Chinese auto asset-backed securities grow like topsy

Chinese asset-backed securities grow like topsy

https://www.ft.com/content/089553ea-c86d-11e7-ab18-7a9fb7d6163e

Issuance of securitised assets rose 61 per cent in the first half of this year and could climb to $170bn for the full year, according to research by Bank of America Merrill Lynch. But are foreign investors ready to dive in?

The answer appears to be a qualified yes. Given memories of how the US collateralised debt obligation (CDOs) market imploded 10 years ago, it is not surprising that foreign investors are cautious and generally avoid local issuers. Nevertheless, car loan asset-backed securities issued by well-known international companies such as Volkswagen, Ford Motor and others are proving popular, analysts said.

“Right now in asset-based finance in China, the area that foreign bond investors want to look at is foreign car manufacturers doing financing for auto loans,” said Alexander Batchvarov, managing director at BofA in London. “Currently this is giving a 5 to 8 per cent yield in renminbi.

This is not a yield you can get anywhere in European investment grade bonds.” Effectively, investors are putting their trust in the reputation of the US and European carmakers to ensure that due diligence on loan quality is being observed and transparency standards upheld.

So far, while the Chinese economy continues to grow strongly, the rates of delinquency on such asset-backed securities are low, analysts said. Liquidity levels have also been helped by strong issuance.

Total auto asset-backed securities issued in the first half of the year hit Rmb60bn, according to Standard & Poor’s.

UK car sales tumble by 12% as confidence declines

UK car sales tumble by 12% as confidence declines

https://www.theguardian.com/business/live/2017/nov/06/uk-car-sales-fall-diesel-german-factories-ftse-pound-cbi-business-live

UK diesel car sales fall by nearly a third in October

UK diesel car sales fall by nearly a third in October  

http://www.bbc.co.uk/news/business-41884203

Refugee auto loan program may be model to help low-income families with financing

Refugee auto loan program may be model to help low-income families with financing

 www.sandiegouniontribune.com/news/immigration/sd-me-refugee-loan-20171025-story.html

The UK car industry is reliant on customers buying cars they don’t need with money they don’t have. That is simply not sustainable

  The UK car industry is reliant on customers buying cars they don’t need with money they don’t have. That is simply not sustainable


www.thecarexpert.co.uk/collapsing-car-sales-is-the-car-industry-in-crisis/

Auto lenders brace for losses from Harvey, Irma and Maria

Auto lenders brace for losses from Harvey, Irma and Maria

I Know What the Economy Did Last Summer Part 1 : Carmageddon and the Retail Apocalypse

I Know What the Economy Did Last Summer Part 1 : Carmageddon and the Retail Apocalypse 

http://news.goldseek.com/GoldSeek/1507039142.php

Closer Look at Credit Enhancements in Subprime Auto ABS Market Show Signs of VulnerabilityNew “Credit Chronometer” to Analyze Developments Impacting Credit Markets, including $100 Billion Auto Loan Securitization Market

Closer Look at Credit Enhancements in Subprime Auto ABS Market Show Signs of Vulnerability

New “Credit Chronometer” to Analyze Developments Impacting Credit Markets, including $100 Billion Auto Loan Securitization Market

 http://www.businesswire.com/news/home/20171010005700/en/Closer-Credit-Enhancements-Subprime-Auto-ABS-Market

Consumer appropriate finance can prevent boom/bust

  Consumer appropriate finance can prevent boom/bust
 https://www.motortradenews.com/industry-news/40937-consumer-appropriate-finance-can-prevent-boom-bust

Car Loan Boom Led by Lloyds Stokes Loss Fears as Sales Dip

  Car Loan Boom Led by Lloyds Stokes Loss Fears as Sales Dip

https://www.bloomberg.com/news/articles/2017-10-11/car-loan-boom-led-by-lloyds-stokes-fears-of-losses-as-sales-dip

Media warnings not slowing down car finance lending

Media warnings not slowing down car finance lending

www.thecarexpert.co.uk/media-warnings-not-slowing-car-finance-lending/

Credit unions to tap ABS market?

https://www.structuredcreditinvestor.com/article_loggedOut.asp?subtype=notloggedon&Status=8&SID=64510&ISS

Lease finance questions rise as UK vehicle market stalls Drivers are choosing not to buy cars outright, leaving automakers with all the risks

Lease finance questions rise as UK vehicle market stalls Drivers are choosing not to buy cars outright, leaving automakers with all the risks 

https://www.ft.com/content/d80f738a-5824-11e7-80b6-9bfa4c1f83d2

Pushing through ‘alarm bells’ within the subprime auto ABS market

Pushing through ‘alarm bells’ within the subprime auto ABS market 

www.autoremarketing.com/subprime/pushing-through-‘alarm-bells’-within-subprime-auto-abs-market

UK Used diesel cars have lost up to a quarter of their value since the start of 2017

 UK Used diesel cars have lost up to a quarter of their value since the start of 2017 

www.telegraph.co.uk/news/2017/09/11/used-diesel-cars-have-lost-quarter-value-since-start-2017/

Here’s Why S&P Isn’t Worried About Subprime Auto Loans Credit metrics for subprime auto loans are getting worse, but the ABS market is stable, says S&P.

  Here’s Why S&P Isn’t Worried About Subprime Auto Loans Credit metrics for subprime auto loans are getting worse, but the ABS market is stable, says S&P. 

www.barrons.com/articles/heres-why-s-p-isnt-worried-about-subprime-auto-loans-1505153277

Plug In Adventures becomes first team to complete epic Mongol Rally challenge in all-electric Nissan Leaf car

Plug In Adventures becomes first team to complete epic Mongol Rally challenge in all-electric Nissan Leaf  car
http://nissannews.com/en-US/nissan/usa/releases/plug-in-adventures-becomes-first-team-to-complete-epic-mongol-rally-challenge-in-all-electric-car

Auto financing sector to hit 2 trillion yuan by 2020, doubling 2016

  Auto financing sector to hit 2 trillion yuan by 2020, doubling 2016

http:// www.chinadaily.com.cn/bizchina/motoring/2017-09/11/content_31839176.htm

Every single category of UK motorcycle sales is down…

Every single category of UK motorcycle sales is down…

www.motofire.com/2017/09/news/every-single-category-uk-motorcycle-sales/

uk car-buyer-debt-increases-further-despite-warnings

uk car-buyer-debt-increases-further-despite-warnings/


www.thecarexpert.co.uk/car-buyer-debt-increases-further-despite-warnings/

How Long Is That Loan? Average Car Note Now 6 Years, Some Nearing 8

  How Long Is That Loan? Average Car Note Now 6 Years, Some Nearing 8 

detroit.cbslocal.com/2017/09/07/how-long-is-that-loan-average-car-note-now-6-years-some-nearing-8/

Auto Lenders Provide Relief Amid Hurricane Harvey Devastation

 Auto Lenders Provide Relief Amid Hurricane Harvey Devastation

  http://www.autofinancenews.net/auto-lenders-provide-relief-amid-hurricane-harvey-devastation/

Auto-Loan Balances Hit Record $1.1 Trillion

 Auto-Loan Balances Hit Record $1.1 Trillion

wardsauto.com/f-i/auto-loan-balances-hit-record-11-trillion

The Wells Fargo Board Should Be on the Next Stagecoach Out of Town

  The Wells Fargo Board Should Be on the Next Stagecoach Out of Town

www.truth-out.org/buzzflash/commentary/the-wells-fargo-board-should-be-on-the-next-stage-coach-out-of-town

LAST GENERATION OF FOSSIL FUEL CAR BUYERS

LAST GENERATION OF FOSSIL FUEL CAR BUYERS 

https://www.thehrdirector.com/business-news/environment/last-generation-fossil-fuel-car-buyers/

It is a changing time for the market and with this we’re likely to a shift in the way drivers purchase vehicles, too.

We expect the number of drivers choosing personal contract hire (PCH) will rise as dealers start to push these plans to steer clear of the negative rhetoric surrounding personal contract purchase (PCP).

Fleet sales have also dipped New sales to the fleet sector were down 3.2% y/y in August after a drop of 10.1% in July.

https://www.economicvoice.com/6-percent-year-on-year-drop-in-new-uk-car-sales/ 

Fleet sales have also dipped New sales to the fleet sector were down 3.2% y/y in August after a drop of 10.1% in July.

This may be of particular concern to the car sector as the fleet sector had held up pretty well through the first half of 2017.

This could well be due to businesses becoming more reluctant to replace or add to their fleets amid heightened economic and political uncertainties. Fleet sales were flat y/y over the first eight months of 2017. Reinforcing the weakened picture, new car sales to the business sector fell 14.1% y/y although this sector is now small with sales at just 971 in August.

Auto loan delinquency rates rise in Alaska since recession began

  Auto loan delinquency rates rise in Alaska since recession began 

https://www.adn.com/business-economy/2017/09/01/auto-loan-delinquency-rates-rise-in-alaska-since-recession-began/

Tesla Model S durability: cars with 250K and 300K miles still humming along happily

Tesla Model S durability: cars with 250K and 300K miles still humming along happily

  www.greencarreports.com/news/1112465_tesla-model-s-durability-cars-with-250k-and-300k-miles-still-humming-along-happily

UK car sales fall for 5th month running - Diesel sales slide by 21%

UK car sales fall for 5th month running

Breaking! Britain’s car industry has suffered its fifth monthly fall in sales.

New car registrations shrank by 6.4% in August, extending a sales decline that began in April and has fuelled worries over the UK economy.

It means that sales in 2017 are 2.4% lower than a year ago, with 1,640,241 new cars joining British roads since January.

9h ago 09:20 Diesel sales slide by 21% Diesel bore the brunt of the sales decline in August, the SMMT says: Demand for petrol hybrid and pure electric battery powered cars increased substantially, up 74.9% and 62.5%, while plug-in hybrid registrations rose 38.5%. Conventional petrols grew 3.8% and diesels fell -21.3%.

https://www.theguardian.com/business/live/2017/sep/05/markets-uk-service-sector-car-sales-china-growth-business-live?page=with:block-59ae5a42e4b07c775243ecec#block-59ae5a42e4b07c775243ecec

Capital One Continues To Push Auto Loans Despite Weakening Industry Conditions

Capital One Continues To Push Auto Loans Despite Weakening Industry Conditions

  https://www.forbes.com/sites/greatspeculations/2017/08/31/capital-one-continues-to-push-auto-loans-despite-weakening-industry-conditions/#65e4b2ba2641

Santander replaces chief of US subprime auto lender unit

  Santander replaces chief of US subprime auto lender unit 

https://www.ft.com/content/9bf13770-8c05-11e7-a352-e46f43c5825d

Secrets of Your New Car As concern grows around household debt, Dispatches investigates car finance, with undercover filming

Secrets of Your New Car As concern grows around household debt, Dispatches investigates car finance, with undercover filming exposing questionable sales tactics and confusing advice 

http://www.channel4.com/programmes/dispatches/on-demand/66549-001

Putting facts first in the media's battle with the car loan industry

  Putting facts first in the media's battle with the car loan industry 

www.assetfinanceinternational.com/index.php/auto/emea/auto-emea-articles2/15779-analysis-putting-facts-first-in-the-media-s-battle-with-the-car-loan-industry

Ford To Abandon "Traditional Credit Scores" For Underwriting Decisions As Sales Stall

Ford To Abandon "Traditional Credit Scores" For Underwriting Decisions As Sales Stall

 http://www.zerohedge.com/news/2017-08-25/ford-credit-abandon-traditional-credit-scores-sales-stall-and-subprime-delinquencies

Canada Consumer Debt Follows US, Hits Record Levels

Canada Consumer Debt Follows US, Hits Record Levels

   https://www.valuewalk.com/2017/08/canadas-consumer-debt/

Ford Lowering Loan Standards To Boost Sales As Delinquencies, Defaults On Rise

Ford Lowering Loan Standards To Boost Sales As Delinquencies, Defaults On Rise 

https://www.valuewalk.com/2017/08/auto-loan-delinquencies/

American Credit Acceptance bundled leftover loans from some paid-off asset-backed transactions to fortify its latest $234.1 million deep-subprime vehicle securitization.

American Credit Acceptance bundled leftover loans from some paid-off asset-backed transactions to fortify its latest $234.1 million deep-subprime vehicle securitization. 

https://asreport.americanbanker.com/news/called-collateral-enhances-acas-234m-subprime-auto-deal

Canada's loan debt per borrower and delinquency rates rise

Canada's loan debt per borrower and delinquency rates rise   

http://www.autonews.com/article/20170823/FINANCE_AND_INSURANCE/170829887/canadas-loan-debt-per-borrower-and-delinquency-rates-rise

"Deep subprime" issuers driving up auto loan delinquencies

"Deep subprime" issuers driving up auto loan delinquencies    http://www.globalcapital.com/article/b14f5chqw3p4r9/39deep-subprime39-issuers-driving-up-auto-delinquencies

Richard Wolff: has the economy hit a new crisis milestone?

  Richard Wolff: has the economy hit a new crisis milestone?

https://www.rt.com/shows/big-picture/400597-richard-wolff-trump-afghanistan/

Why Auto Title Loans Are a Bad Idea

  Why Auto Title Loans Are a Bad Idea 

host.madison.com/business/investment/markets-and-stocks/why-auto-title-loans-are-a-bad-idea/article_afea3de1-7dba-5978-b339-b983ce25a151.html

'Self-driving' lorries to be tested on UK roads

  'Self-driving' lorries to be tested on UK roads

www.bbc.co.uk/news/technology-41038220

Growth at any cost - Financial suicide in subprime autos by UBER dissected by Max Kaiser & Stacey

Growth at any cost - Financial suicide in subprime autos by UBER dissected by Max Kaiser & Stacey

https://www.rt.com/shows/keiser-report/400226-episode-max-keiser-1112/

Start of a New Trend? Pullback in Subprime Loans Observed

Start of a New Trend? Pullback in Subprime Loans Observed 

https://globenewswire.com/news-release/2017/08/16/1086513/0/en/Start-of-a-New-Trend-Pullback-in-Subprime-Loans-Observed.html

Used-Vehicle Depreciation Surges Amid Rising Incentives, Leasing, Repos

Used-Vehicle Depreciation Surges Amid Rising Incentives, Leasing, Repos 

www.autofinancenews.net/used-vehicle-depreciation-surges-amid-rising-incentives-leasing-repos/

Ford announces £2,000 scrappage scheme for pre-2010 cars

 Ford announces £2,000 scrappage scheme for pre-2010 cars 

www.bbc.co.uk/news/business-41005208

Westlake Financial Services Completes Largest Ever ABS (Asset-Backed Securitization) at $800 Million

 Westlake Financial Services Completes Largest Ever ABS  (Asset-Backed Securitization) at $800 Million

www.businesswire.com/news/home/20170821005751/en/Westlake-Financial-Services-Completes-Largest-ABS-800

Living in a Car on $800 a Month

Living in a Car on $800 a Month

https://www.youtube.com/watch?v=b0EoyTzcFOI

Bank in new alert over car finance dangers: Unexpected fall in sales leading to dealers offering increasingly high-risk deals

 Bank in new alert over car finance dangers: Unexpected fall in sales leading to dealers offering increasingly high-risk deals

www.dailymail.co.uk/news/article-4794264/Bank-new-alert-car-finance-dangers.html

Are Bank of England's £78billion loans fuelling consumer debt bubble? Fears decision to lend money could lead to another financial crisis

  Are Bank of England's £78billion loans fuelling consumer debt bubble? Fears decision to lend money could lead to another financial crisis

www.dailymail.co.uk/news/article-4807962/Fears-debt-bubble-caused-Bank-England-fund.html

Banks are cutting back on lending to the riskiest borrowers

  Banks are cutting back on lending to the riskiest borrowers 

http://uk.businessinsider.com/credit-score-transunion-subprime-loan-originations-2017-8

Flagship Continues to Reduce Loan Terms, Latest ABS Shows

  Flagship Continues to Reduce Loan Terms, Latest ABS Shows 

www.autofinancenews.net/flagship-continues-to-reduce-loan-terms-latest-abs-shows/

The Latest Predatory Banking Practice You Haven’t Heard About: Auto Loans

  The Latest Predatory Banking Practice You Haven’t Heard About: Auto Loans

The subprime auto-loan industry is now worth about $26 billion.

https://www.thenation.com/article/the-latest-predatory-banking-practice-you-havent-heard-about-auto-loans/

Car finance's lack of transparency is hurting consumers

  Car finance's lack of transparency is hurting consumers

https://www.digitallook.com/news/news-and-announcements--/comment-car-finances-lack-of-transparency-is-hurting-consumers--2819394.html

Absolute control of money corrupts absolutely

Absolute control of money corrupts absolutely

Now auto sub-prime Similar to the sub-prime mortgage loans (i.e. loans to people who would not qualify for one), bankers and auto dealers, backed by auto companies, are offering loans to, as the website

www.zerohedge.com says, ‘anyone with a pulse is entitled to a 0 per cent down, 0 per cent interest, 80 month loan on a brand new $40,000 vehicle’. The outstanding value of sub-prime auto loans is $ 1.2 trillion.

During the sub-prime mortgage crisis of 2008, lenders made one assumption and one fiendishly clever move.
The assumption was that home prices would keep rising, so that, if an unqualified borrower defaulted (as was likely) the bank could always recoup its money because the price rise would cover the loan default.

www.thehindubusinessline.com/markets/stock-markets/absolute-control-of-money-corrupts-absolutely/article9823033.ece

Lib Dem leader Sir Vince Cable fearful over second credit crunch

Lib Dem leader Sir Vince Cable fearful over second credit crunch

 http://www.sundaypost.com/fp/lib-dem-leader-sir-vince-cable-fearful-over-second-credit-crunch/

Lloyds pushes £60k car loans without ANY credit checks: Banks become embroiled in row over reckless lending after mass-mailing customers about luxury vehicles

Lloyds pushes £60k car loans without ANY credit checks: Banks become embroiled in row over reckless lending after mass-mailing customers about luxury vehicles

www.dailymail.co.uk/news/article-4804210/Lloyds-pushes-60k-car-loans-without-credit-checks.html

UK car dealers feel chill of falling sales

UK car dealers feel chill of falling sales
Financial Times

Marshall Motors, another big UK dealership, reported this week that 83 per cent of new and 62 per cent of its used cars were sold on PCP plans.

http://www.ft.com/content/20760daa-840d-11e7-94e2-c5b903247afd

Bloomberg Markets: Tempkin on Deep Subprime Car Loans Crisis

Bloomberg Markets: Tempkin on Deep Subprime Car Loans Crisis   

https://www.bloomberg.com/news/audio/2017-08-16/bloomberg-markets-tempkin-on-deep-subprime-car-loans-crisis

Making Sense: There’s Something Odd In The Auto Market

Making Sense: There’s Something Odd In The Auto Market

    https://learnbonds.com/134987/making-sense-theres-something-odd-in-the-auto-market/

UK car lenders vulnerable after surge in risky loans - BoE

 UK car lenders vulnerable after surge in risky loans - BoE  

https://www.irishtimes.com/business/transport-and-tourism/uk-car-lenders-vulnerable-after-surge-in-risky-loans-boe-1.3187607

India says no to driverless cars to protect jobs

India says no to driverless cars to protect jobs 

http://www.bbc.co.uk/news/technology-40716296 

‘Deep’ Subprime Car Loans Hit Crisis-Era Milestone

  ‘Deep’ Subprime Car Loans Hit Crisis-Era Milestone 

https://www.bloomberg.com/news/articles/2017-08-15/-deep-subprime-car-loans-hit-crisis-era-milestone-as-woes-mount

Headwinds for UK used car prices cause for ABS concern, says BAML

  Headwinds for UK used car prices cause for ABS concern, says BAML 

www.globalcapital.com/article/b149kb89s5sbst/headwinds-for-uk-used-car-prices-cause-for-abs-concern-says-baml

Where Dodd-Frank Didn't Go Far Enough exemption for auto lenders has led to a dangerous bubble

   Where Dodd-Frank Didn't Go Far Enough   exemption for auto lenders has led to a dangerous bubble 

https://www.bloomberg.com/view/articles/2017-08-10/where-dodd-frank-didn-t-go-far-enough

Uber’s divorce from auto leasing business highlights subprime market risks

Uber’s divorce from auto leasing business highlights subprime market risks   

https://www.marketplace.org/2017/08/10/business/uber-s-divorce-auto-leasing-business-highlights-subprime-market-risks

Wells Fargo Plans to Compensate Car-Loan Customers Who Received Unwanted Auto Insurance

Wells Fargo Plans to Compensate Car-Loan Customers Who Received Unwanted Auto Insurance 

www.bodyshopbusiness.com/wells-fargo-plans-compensate-car-loan-customers-received-unwanted-auto-insurance/

highest credit card debt in the history of the USA $1 TRILLION

highest credit card debt in the history of the USA $1 TRILLION 

www.malaysia-chronicle.com/us1-021-trillion-of-credit-card-debts-no-its-not-najib-rosmah-but-american-consumers-u-s-creates-history/

Risk Premiums on Subprime Auto Debt Are Sinking Near Record Lows

Risk Premiums on Subprime Auto Debt Are Sinking Near Record Lows 

https://www.bloombergquint.com/global-economics/2017/08/08/risk-premiums-on-subprime-auto-debt-are-sinking-near-record-lows

Second Hand, Second Rate?

  Second Hand, Second Rate?

https://fleetworld.co.uk/second-hand-second-rate/

Wall Street Thieves Find New Ways to Steal From Us

  Wall Street Thieves Find New Ways to Steal From Us 

https://www.commondreams.org/views/2017/08/09/wall-street-thieves-find-new-ways-steal-us

Sure enough, only a decade later, here they come again! Rather than investing America's capital in real businesses to generate grassroots jobs and shared prosperity, Wall Street is siphoning billions of investment dollars into speculative nonsense — such as high-profit securities "secured" only by rickety bundles of subprime auto loans.

Car dealers, eager to goose up sales, have been hawking new vehicles to lower-income people, offering quick credit approval. Banks — eager to hook more people on monthly car payments — have been approving these subprime car loans without verifying the buyer's ability to pay. Then, a Wall Street bank's investment house buys up thousands of these iffy individual loans, bundles them into multimillion-dollar "debt securities," and sells them to wealthy global speculators. Last year alone, banks sold $26 billion-worth of these explosive bundles of car loans.

This is just another paper-shuffling con game, a repeat of Wall Street's subprime mortgage scam a decade ago. It generates fast, easy money at the start for superrich speculators and greedy banksters — but as more and more low-income buyers are unable to make their car payments, defaults build up and the whole financial bubble pops.

Wasting America's much-needed investment capital on a predatory lending scheme that intentionally puts people in cars they can't afford with loans they can't repay is not only stupid, but immoral... and it's killing our real economy. Why are we letting elite Wall Street loan sharks do this to us?

These same practices of bundling and re-selling were the cause of the 2007 crash in the housing market that led to millions of American families losing their homes. But, 10 years later ... where did all those houses go?

BMW offers cash incentive to trade in older diesels

  BMW offers cash incentive to trade in older diesels

https://www.whatcar.com/news/bmw-diesel-cash/

Uber is phasing out its subprime car-leasing division after massive losses

Uber is phasing out its subprime car-leasing division after massive losses  


https://www.theverge.com/2017/8/8/16112498/uber-phase-out-xchange-car-leasing-losses

FCA car finance probe puts a priority on customer welfare Fairness and transparency of car finance deals being questioned

 FCA car finance probe puts a priority on customer welfare Fairness and transparency of car finance deals being questioned

www.thecarexpert.co.uk/fca-car-finance-probe-puts-a-priority-on-customer-welfare/

New Uk cars sales fall for fourth month in a row

  New UK cars sales fall for fourth month in a row 

https://inews.co.uk/essentials/lifestyle/cars/car-news/new-cars-sales-fall-fourth-month-row/

Santander Spells Out Dealer Fraud Protections, Income Verification Process

  Santander Spells Out Dealer Fraud Protections, Income Verification Process 

www.autofinancenews.net/santander-spells-out-dealer-fraud-protections-income-verification-process/

The Auto Industry Has Hit a Worrying Peak, Doug Kass Reveals 8 Telling Reasons Why

  The Auto Industry Has Hit a Worrying Peak, Doug Kass Reveals 8 Telling Reasons Why 

https://www.thestreet.com/story/14230266/1/peak-autos-market-musings-doug-kass-views.html

1. Car companies are offering the largest incentives on price in years.

2. The automobile inventory-to-sales and days-to-turn-sales ratios are back to elevated 2008 levels.

3. Used-car prices (the Manheim Index) have steadily declined.

4. A record level of autos are going off lease and will return to and further depress the used-car market.

5. After years of subsidized, low-rate auto loans, the consumer is spent up, not pent up, as car sales have been pulled forward.

6. Subprime auto loan delinquencies are ratcheting higher, and some auto lenders are turning away from the market.

7. Managements have poorly prepared for the auto down cycle.

8. The risks of protectionism and trade wars have recently increased.

PCP car deals: hidden insurance trap revealed

 PCP car deals: hidden insurance trap revealed

http:// www.telegraph.co.uk/financial-services/motoring/pcp-car-deals-insurance-trap/
 
Quote
....New cars will almost always start going down in value from the moment you buy them, so if you need to make a claim, insurers will only compensate you for the current market value, and not the value of the car when it was brand new - leaving you with a shortfall to pay.
So with PCP car deals you could be faced with unexpected bills if you have an accident, or if your car is stolen, as the ‘protection’ it offers only comes once the PCP loan term comes to an end, when most people hand the car back.
And with 450,000 vehicles written off every year in accidents, and over 76,000 stolen, the risks are high. There has been a significant rise in motorists defaulting on payments for new car loans, with the total amount of car finance debt going up 15% in the past year.
MotorEasy founder, Duncan McClure Fisher, said:
“Before that settlement figure is paid at the end of the agreement, you are just as exposed as with any other finance arrangement.”

Trust the data: Auto lending is sound

High interest rates, quick repossessions dog auto buyers with poor credit

 High interest rates, quick repossessions dog auto buyers with poor credit  

www.tbo.com/news/business/autos/high-interest-rates-quick-repossessions-dog-auto-buyers-with-poor-credit/2332658

Britain's leading sub-prime lender reveals it will close

Britain's leading sub-prime lender reveals it will close

http://www.dailymail.co.uk/news/article-4762822/Fears-mount-UK-sub-prime-lender-reveals-close.html

Highways England is considering plans to cover busy roads in canopy-style tunnels in a bid to cut down on pollution levels.

 Highways England is considering plans to cover busy roads in canopy-style tunnels in a bid to cut down on pollution levels.

www.ukconstructionweek.com/news/construction-buzz/1586-roads-could-be-covered-by-tunnels-to-cut-traffic-fumes-construction-buzz-127

The serious risk is that the bond holder is leveraged so their 10% bond value hit transpires to be a 100-200% hit

 https://www.pistonheads.com/gassing/topic.asp?h=0&f=23&t=1662342

Yes. The serious risk is that the bond holder is leveraged so their 10% bond value hit transpires to be a 100-200% hit. Their lender gives them a margin call and they default, thus the counter party carries the loss. Enough of that and the counter parties then start to struggle to handle the losses.

The risk to manufacturers is that a sudden change in bond pricing could be a toxic shock to their business model that sees them unable to react quickly enough to pass the cost down the line to the consumer or for the consumers to stop buying their credit. The balance sheets of the manufacturers are not exactly robust. They are all heavily laden with debt, the cost of which would likely be raised to reflect their weaker economic status etc.

The other issue for manufacturers is that having converted the entire retail consumer action into monthly debt consumption and quick rise in retail financing costs would arguably see huge and rapid changes in what the consumers are purchasing with their fixed monthly packages. Such changes would almost certainly occur quicker than a manufacturer could change its direction. For example, will consumers keep buying the same model of car but drop all the options or drop down the model range or move to cheaper brands. Any of those changes present a very big hit to manufacturers if they happen quicker than they can react.

The key thing is that consumer debt has been put on the tabloid front pages and on the desk of the regulators before it is a very serious risk and so now we just need to see if there is a response or if it is ignored. What we do know is that consumers cannot self regulate so they will keep consuming until they implode or the system implodes around them so it must be the lenders who must be steered and the bond holders so that whatever happens it is not another problem for the taxpayer to fund.

Diesel ban threatens to stall German auto sector

Diesel ban threatens to stall German auto sector

www.reuters.com/article/diesel-ban-threatens-to-stall-german-aut-idUSL5N1KP7ER

Crashing Auto Sales Reflect Onset Of Debt Armageddon

  Crashing Auto Sales Reflect Onset Of Debt Armageddon

investmentresearchdynamics.com/crashing-auto-sales-reflects-onset-of-debt-armageddon/

Reports that Amazon had begun hiring people from the motor retail sector to explore selling cars online

reports that Amazon had begun hiring people from the motor retail sector to explore selling cars online 

www.am-online.com/opinion/2017/07/25/from-amazon-to-westminster-car-dealers-have-had-enough-of-change-for-now

“Peak Auto” is Finally Here

 “Peak Auto” is Finally Here 

https://dailyreckoning.com/peak-auto-finally/  https://carcreditcrunch.blogspot.co.uk/2017/08/peak-auto-is-finally-here.html

Auto loan cap slams brake on four-wheelers’ growth

Auto loan cap slams brake on four-wheelers’ growth  

https://thehimalayantimes.com/business/auto-loan-cap-slams-brake-on-four-wheelers-growth/

Did the Sub-Prime 2.0 Bubble Just Burst?

 Did the Sub-Prime 2.0 Bubble Just Burst?

news.goldseek.com/GoldSeek/1501788209.php

Unemployment in the UK is now so low it's in danger of exposing the lie used to create the numbers

  Unemployment in the UK is now so low it's in danger of exposing the lie used to create the numbers 

http://uk.businessinsider.com/unemployment-in-the-uk-is-now-so-low-its-in-danger-of-exposing-the-lie-used-to-create-the-numbers-2017-7

The UK car business has 'exactly the same problems' as the mortgage market 10 years ago, according to Morgan Stanley

The UK car business has 'exactly the same problems' as the mortgage market 10 years ago, according to Morgan Stanley 

http://uk.businessinsider.com/uk-car-finance-pcp-mortgage-market-morgan-stanley-2017-7

Used Car Prices Continue To Plummet But Sub-Prime Loans Rush In To Save The Day

Used Car Prices Continue To Plummet But Sub-Prime Loans Rush In To Save The Day 

www.autospies.com/news/Used-Car-Prices-Continue-To-Plummet-But-Sub-Prime-Loans-Rush-In-To-Save-The-Day-93744/

Big Three auto sales fall hard in July

Big Three auto sales fall hard in July 

http://uk.businessinsider.com/us-auto-sales-july-2017-8

Outlook darkens for UK debt collateral Moody’s stance turns negative on loans bundled into asset-backed securities

  Outlook darkens for UK debt collateral
Moody’s stance turns negative on loans bundled into asset-backed securities 

https://www.ft.com/content/155fa67e

Moody’s has raised the alarm over a wide range of UK consumer loans that are bundled together and sold to institutional investors 

Auto loans, credit cards, buy-to-let mortgages and so-called “non-conforming” mortgages

2015 subprime vintage suffers losses not seen since 2005

  2015 subprime vintage suffers losses not seen since 2005 

http://www.autoremarketing.com/subprime/2015-subprime-vintage-suffers-losses-not-seen-2005

Subprime Auto Loan Defaults on the Rise Bill Black the white collar criminologist says It is a very severe problem for consumers

Subprime Auto Loan Defaults on the Rise Bill Black the white collar criminologist says It is a very severe problem for consumers who are going to lose not only their cars, but their credit ratings 

therealnews.com/t2/story:19641:Subprime-Auto-Loan-Defaults-on-the-Rise

Santander Makes Unexpected Subprime Gains as Competitors Pullback

Santander Makes Unexpected Subprime Gains as Competitors Pullback

http://www.autofinancenews.net/santander-makes-unexpected-subprime-gains-as-competitors-pullback/

Your neighbour's shiny new SUV is about to crash the economy

PETER HITCHENS: Your neighbour's shiny new SUV is about to crash the economy

http://www.dailymail.co.uk/debate/article-4743244/PETER-HITCHENS-Car-finance.html

Discuss
www.housepricecrash.co.uk/forum/index.php?/topic/229784-boe-investigates-terrifying-rise-in-borrowing-to-fund-new-car-purchases/&page=24

Wells Fargo charged 570,000 customers for auto insurance they didn’t need

  Wells Fargo charged 570,000 customers for auto insurance they didn’t need

  https://www.washingtonpost.com/news/business/wp/2017/07/28/wells-fargo-charged-570000-customers-for-auto-insurance-they-didnt-need-potentially-forced-some-to-have-cars-repossessed/

Wells Fargo May Have Charged 500,000 Clients for Unwanted Insurance

  Wells Fargo May Have Charged 500,000 Clients for Unwanted Insurance 

fortune.com/2017/07/28/wells-fargo-loan-default-scandal/

Franchised dealers defend PCP car finance deals from media attacks

Franchised dealers defend PCP car finance deals from media attacks  

www.am-online.com/news/finance/2017/07/25/franchised-dealers-defend-pcp-car-finance-deals-from-media-attacks

Sub-prime auto bets pay off

Sub-prime auto bets pay off   https://www.investing.com/news/stock-market-news/wells-fargo-to-refund-$80-million-to-customers-hit-by-car-loan-insurance-511446

Sub-Prime Auto Loan Delinquencies Continue to Rise, but Experts Provide Divergent Views of Impact

 Sub-Prime Auto Loan Delinquencies Continue to Rise, but Experts Provide Divergent Views of Impact

https://www.natlawreview.com/article/sub-prime-auto-loan-delinquencies-continue-to-rise-experts-provide-divergent-views

Wells Fargo Announces Plan to Remediate Customers for Auto Insurance Coverage

  Wells Fargo Announces Plan to Remediate Customers for Auto Insurance Coverage

  www.businesswire.com/news/home/20170727006737/en/Wells-Fargo-Announces-Plan-Remediate-Customers-Auto

Are Subprime Car Loans Falling Off a Cliff?

Are Subprime Car Loans Falling Off a Cliff?    themarketmogul.com/subprime-car-loans/?hvid=1vcrQq

Most Ignore This Potentially Fatal Problem in the U.S. Economy

  Most Ignore This Potentially Fatal Problem in the U.S. Economy 

https://www.lombardiletter.com/most-ignore-this-potentially-fatal-problem-in-the-u-s-economy/14231/

Don't Cry for Subprime Auto-Debt Buyers

Don't Cry for Subprime Auto-Debt Buyers 

https://www.bloomberg.com/gadfly/articles/2017-07-25/auto-debt-buyers-find-immunity-from-subprime-distress

..And in an odd twist of logic, the ratings of these subprime securities backed by auto debt are steadily improving even as more American borrowers fail to meet their monthly obligations...

How Your Credit Score Affects Car Financing

  How Your Credit Score Affects Car Financing

www.consumerreports.org/car-financing/how-your-credit-score-impacts-car-financing/

LTVs Hit Record Low in Santander’s DRIVE Auto Securitization

LTVs Hit Record Low in Santander’s DRIVE Auto Securitization

www.autofinancenews.net/ltvs-hit-record-low-in-santanders-drive-auto-securitization/

Why Auto Loan Bubble Is Different than Housing Bubble

  Why Auto Loan Bubble Is Different than Housing Bubble

https://www.moneyshow.com/articles/tradingidea-46551/why-auto-loan-bubble-is-different-than-housing-bubble/

Bank of England warns of complacency over big rise in personal debt Banks, credit card companies and car loan providers told they face action against reckless lending

 Bank of England warns of complacency over big rise in personal debt Banks, credit card companies and car loan providers told they face action against reckless lending 

https://www.theguardian.com/business/2017/jul/24/bank-of-england-household-debt-bank-credit-card-car-loans

Auto Industry Benefits For Now From Subprime

  Auto Industry Benefits For Now From Subprime

Loanswww.npr.org/2017/07/24/538970928/auto-industry-benefits-for-now-from-subprime-loans

Millions Of People Think They'll Default On Loans In The Next 12 Months

Millions Of People Think They'll Default On Loans In The Next 12 Months

https://www.forbes.com/sites/eriksherman/2017/07/23/millions-of-people-think-theyll-default-on-loans/

German car industry faces being hit with big fines Tarnished auto sector on the line as groups confront accusations of cartel-like behaviour

German car industry faces being hit with big fines
Tarnished auto sector on the line as groups confront accusations of cartel-like behaviour 

https://www.ft.com/content/2351ae12-705d-11e7-93ff-99f383b09ff9

Ireland finally wakes up to hidden dangers of popular PCP car finance deals

Ireland finally wakes up to hidden dangers of popular PCP car finance deals 

www.independent.ie/business/personal-finance/charlie-weston-official-ireland-finally-wakes-up-to-hidden-dangers-of-popular-pcp-car-finance-deals-35957898.html

Warning about number of cars for sale with money owed on them

  Warning about number of cars for sale with money owed on them 

https://www.rte.ie/lifestyle/motors/2017/0724/892629-finance/

1946 Chevy pickup truck is world's oldest Prius hybrid. Really

1946 Chevy pickup truck is world's oldest Prius hybrid. Really 

www.greencarreports.com/news/1111690_1946-chevy-pickup-truck-is-worlds-oldest-prius-hybrid-really

EU investigating diesel collusion among Audi, BMW, Mercedes, Porsche, VW: report

EU investigating diesel collusion among Audi, BMW, Mercedes, Porsche, VW: report 

http://www.greencarreports.com/news/1111670_eu-investigating-diesel-collusion-among-audi-bmw-mercedes-porsche-vw-report

Different Market, Same Story: Subprime Auto Loan Defaults On The Rise

 Different Market, Same Story: Subprime Auto Loan Defaults On The Rise

https://www.benzinga.com/analyst-ratings/analyst-color/17/07/9784480/different-market-same-story-subprime-auto-loan-defaults-

Ireland.... Over half of new cars sold under finance deals

Ireland....

Over half of new cars sold under finance deals

www.irishexaminer.com/ireland/over-half-of-new-cars-sold-under-finance-deals-455183.html

Cheap money, lax lending standards – I’m getting deja vu here

 Cheap money, lax lending standards – I’m getting deja vu here

moneyweek.com/cheap-money-lax-lending-standards-financial-crisis/

The subprime car loan pile-up

Meanwhile, there’s another chunk of woeful debt building up in another sector. Apparently subprime car loans made in 2015 in the US could end up being the worst performing such debts ever, according to ratings agency Fitch.

Net losses on these bonds are expected to hit 15% – that’s higher even than bonds written in 2007. One problem is that lenders have been lending over a longer period of time, which means that by the tail-end of the loan period, there’s been a big drop off in the car’s “equity” value, potentially leaving the borrower owing a lot of money.

These loans have been parcelled up and sold on to investors, just as with the last subprime crisis (you know, that one with the mortgages that caused a minor kerfuffle in the economy a few years back). And just as with the last subprime crisis, demand from investors for stuff to invest in has seen lending standards plunge across the industry.

Notes Bloomberg: “Wall Street has rewarded lax lending standards that let people get loans without anyone verifying incomes or job histories.” And as a result, a lot of those loans are now going bad.

The biggest difference here is that the scale is not considered large enough to disrupt the entire financial system. And I’m sure that’s true. On their own, car loans are not going to bring the financial system to its knees.

What concerns me is that there’s such a dispersion of bad debt either bubbling up or just waiting to happen. How many dominoes need to tip over before a really important one spills?

As long as investors feel flush and are desperate to chase yield, the dancing can continue. But that’ll change. And I expect to see quite a few casualties when it does.

Auto Loan Debt Bubble Could Be The Next To Burst (CARZ)

https://etfdailynews.com/2017/07/19/auto-loan-debt-bubble-could-be-the-next-to-burst-carz/ 

A changed landscape in Canadian auto finance When captives retreated from market in 2008, banks filled void

A changed landscape in Canadian auto finance When captives retreated from market in 2008, banks filled void 

www.autonews.com/article/20170719/COPY01/307199999/a-changed-landscape-in-canadian-auto-finance

Sub-prime auto loans and the US property market

 Sub-prime auto loans and the US property market

https://www.propertyforum.com/property-in-the-us/sub-prime-auto-loans-us-property-market.html

CCPC study of PCP car finance in Ireland

CCPC study of PCP car finance

https://www.ccpc.ie/consumers/2017/07/17/ccpc-study-pcp-car-finance/

Subprime auto loans are defaulting at dangerous rates

Subprime auto loans are defaulting at dangerous rates

https://finance.yahoo.com/video/bumpy-road-ahead-auto-industry-181649147.html

As Lending Goes, So Goes the Auto Industry

As Lending Goes, So Goes the Auto Industry 

wardsauto.com/f-i/lending-goes-so-goes-auto-industry

Auto loan defaults soaring in US

Auto loan defaults soaring 

www.bendbulletin.com/business/5453494-151/auto-loan-defaults-soaring

Subprime Loans Defaulting At Record Rates - Will The Next Recession Be Triggered By The Auto Industry?

Subprime Loans Defaulting At Record Rates - Will The Next Recession Be Triggered By The Auto Industry? 

autospies.com/news/Subprime-Loans-Defaulting-At-Record-Rates-Will-The-Next-Recession-Be-Triggered-By-The-Auto-Industry-93580/

Competition watchdog to examine PCP car finance market

 Competition watchdog to examine PCP car finance market 

https://www.rte.ie/news/business/2017/0717/890778-ccpc-to-examine-pcp-car-finance-market/

Auto loan defaults are soaring

  Auto loan defaults are soaring 

www.mysanantonio.com/business/national/article/Auto-loan-defaults-are-soaring-11295066.php

Big Banks See Home, Car Loans Fall

Big Banks See Home, Car Loans Fall 

http://www.cutimes.com/2017/07/14/big-banks-see-home-car-loans-fall

Two of the nation’s largest banks on Friday reported slower volumes on home and auto loans in the second quarter as mortgage refinances continue to taper off and car lending standards tighten.

Subprime auto loan ABS performance worsens in May

Subprime auto loan ABS performance worsens in May 

http://www.autoremarketing.com/subprime/subprime-auto-loan-abs-performance-worsens-may

Regulator takes action to address risky lending practices - UK Finance Disputes and Regulatory Investigations

 Regulator takes action to address risky lending practices

UK Finance Disputes and Regulatory Investigations Blog

www.lexology.com/library/detail.aspx?g=50be3afd-1ca6-404c-bbd7-90babecff599

Equity release from houses being used to pay off car loans

Equity release from houses being used to pay off car loans 

https://www.ftadviser.com/Articles/2017/07/14/FTA-car-finance-IJ-O-140717