Regulators Scrutinise Car Loans Amid Fears of New Credit Bubble

 Regulators Scrutinise Car Loans Amid Fears of New Credit Bubble

www.morningstar.co.uk/uk/news/159703/regulators-scrutinise-car-loans-amid-fears-of-new-credit-bubble.aspx

The recent Bank of England Stability Report tested 'bad outcome scenarios'

From Comments

https://www.theguardian.com/business/2017/jun/29/uk-fca-car-loans-market

 

The recent Bank of England Stability Report tested 'bad outcome scenarios' looking at residual values and was nnot overly concerned on the impact to the lenders:

In a hypothetical scenario where car values at the end of
contracts turn out to be 20% lower than expected by lenders
at origination — and all PCP borrowers returned their vehicles
 

— Bank staff estimate that market-wide PCP losses could be
3%–6% of the total outstanding stock of car finance. Other
things equal, if these loss rates were experienced on the major
UK banks’ dealership car finance portfolios, it would imply a
reduction of 2–7 basis points in major UK banks’ aggregate
CET1 ratio.(2)

 That is, from a starting point of 13.92%, the
ratio would fall to 13.85%–13.90%. 

Market-wide losses would
rise to 7%–10% of the outstanding stock in a more severe
scenario where car values at the end of contracts turn out to
be 30% lower than originally expected. 

If these loss rates
were applied to major UK banks’ portfolios, they would imply
a reduction of 7–11 basis points in their aggregate CET1 ratio

Cheap finance deals for new cars could be scrapped as experts warn of looming lending crash

Cheap finance deals for new cars could be scrapped as experts warn of looming lending crash

https://www.thesun.co.uk/motors/3895723/cheap-finance-deals-could-be-coming-to-an-end-as-car-finance-crash-looms-but-theres-never-been-a-better-time-to-buy-a-used-motor/

This and Stalling Growth Point to the Coming Great Depression

This and Stalling Growth Point to the Coming Great Depression

https://www.lombardiletter.com/this-and-stalling-growth-point-to-the-coming-great-depression/13198/

UK financial watchdog investigates car loans market

 UK financial watchdog investigates car loans market

https://www.theguardian.com/business/2017/jun/29/uk-fca-car-loans-market

Car loans highlighted among Bank of England’s ‘pockets of risk’

Car loans highlighted among Bank of England’s ‘pockets of risk’ 

www.am-online.com/news/finance/2017/06/28/car-loans-highlighted-among-bank-of-england-s-pockets-of-risk

Car finance boom is 'unlikely to crash the industry' despite Bank of England worries

Car finance boom is 'unlikely to crash the industry' despite Bank of England worries 

www.telegraph.co.uk/business/2017/06/27/car-finance-boom-unlikely-crash-industry-despite-bank-england/

Bank of England assesses car finance crash risk

Bank of England assesses car finance crash risk

www.motortrader.com/motor-trader-news/automotive-news/bank-england-highlights-booming-consumer-credit-car-finance-risks-28-06-2017

Increase in car finance is unlikely to cause credit crunch despite Bank of England fears

Increase in car finance is unlikely to cause credit crunch despite Bank of England fears

www.aol.co.uk/cars/2017/06/28/increase-in-car-finance-is-unlikely-to-cause-credit-crunch-despi/

World premiere of the Vision Van research vehicle – Mercedes-Benz original

 World premiere of the Vision Van research vehicle – Mercedes-Benz original

https://www.youtube.com/watch?v=ve63xdzc3hg

UK credit and car loan problems are building

UK credit and car loan problems are building
 https://notayesmanseconomics.wordpress.com/2017/06/27/uk-credit-and-car-loan-problems-are-building/

Harley Declines to Disclose Financial Info, Despite Regs

Harley Declines to Disclose Financial Info, Despite Regs

powersportsfinance.com/harley-davidson-declines-to-disclose-financial-info-despite-regs/

PCp car credit deals - Falling Sales - Radio 4 You & Yours

PCp car credit deals - Falling Sales -  Radio 4 You & Yours
http://www.bbc.co.uk/programmes/b08sks74

Inside Uber’s unsettling alliance with some of New York’s shadiest car dealers

Inside Uber’s unsettling alliance with some of New York’s shadiest car dealers   

https://qz.com/1013882/ubers-rental-and-lease-programs-with-new-york-car-dealers-push-drivers-toward-shady-subprime-contracts/

Bank of England orders banks to set aside billions as consumer debt soars

Bank of England orders banks to set aside billions as consumer debt soars

www.insider.co.uk/news/bank-england-orders-banks-set-10696476

British Car Dealers Are Worried About Brexit

 British Car Dealers Are Worried About Brexit 

https://uk.motor1.com/news/149587/british-car-dealers-worried-brexit/

New car finance payments go up as UK used car values take a dive

  New car finance payments go up as UK used car values take a dive

 www.autoexpress.co.uk/car-news/consumer-news/99924/new-car-finance-payments-go-up-as-uk-used-car-values-take-a-dive

Top 10 Smallest Cars and Best 2-seater Electric Vehicles for City Driving

Top 10 Smallest Cars and Best 2-seater Electric Vehicles for City Driving
 https://www.youtube.com/watch?v=213hJVJkEdI

Carnell said: “Margins are falling and there is pressure now to reduce the amount of time it takes to turn a car returning from a PCP deal as there are high volumes around

Carnell said: “Margins are falling and there is pressure now to reduce the amount of time it takes to turn a car returning from a PCP deal as there are high volumes around 

www.am-online.com/news/dealer-news/2017/06/26/dealer-group

Car loan payments forced up as price of second-hand vehicles falls: Sellers hike costs to make up for loss in value of vehicles when they are returned

 Car loan payments forced up as price of second-hand vehicles falls: Sellers hike costs to make up for loss in value of vehicles when they are returned
http://www.dailymail.co.uk/news/article-4638268/Payments-forced-price-second-hand-vehicles-falls.html

Car finance: Is it time to go down the PCP and HP road?

  Car finance: Is it time to go down the PCP and HP road?

 www.express.co.uk/finance/personalfinance/821102/Car-finance-PCP-explained-HP-deals

Booming UK used-car market drives debt fears

Booming UK used-car market drives debt fears (FT) 

“However, the detail is the key,” said Rupert Pontin, director of valuations at Glass’s. Newer used-cars are losing more of their value and more quickly.

A used car that is less than two-and-a-half years old is worth 57.6 per cent of its original value, down from 61.1 per cent in 2014.“

This is likely to continue to be the case for the rest of 2017 and into 2018 as well,” he said, as more cars come off the three-year credit deals they were bought with and that have been wildly popular with UK consumers."

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwim0f-D19jUAhXiB8AKHfJABn8QFggtMAE&url=https%3A%2F%2Fwww.ft.com%2Fcontent%2Fd340ea28-5040-11e7-bfb8-997009366969%3Fmhq5j%3De3&usg=AFQjCNG_tGFeKMojmEC45g9VewYvGrv_Qg

 https://www.ft.com/content/d340ea28-5040-11e7-bfb8-997009366969

Uk Market Report: Van Finance

Market Report: Van Finance 

www.motortrader.com/surveys/market-report-van-finance-23-06-2017

“Vans and other vehicles being used for commercial purposes are not well-suited to PCP finance due to the mileage limits that are imposed within PCP agreements. Vans will usually cover significantly more miles than vehicles used for domestic purposes only.  This will affect their minimum guaranteed future value and therefore result in huge additional charges at the end of a PCP agreement,” she said.

“We have seen a gradual increase in the use of vans and other commercial vehicles for social and domestic purposes, as useful vehicles for home improvements and decorating, camper vans and for transportation of sporting equipment for motorcross and watersports. Consumers are increasingly seeing the value of commercial vehicles as they are well-built, designed to endure and highly practical.”

Why is the FCA investigating car finance and PCP? June 23, 2017

  Why is the FCA investigating car finance and PCP? June 23, 2017

https://www.motoringresearch.com/car-news/fca-car-finance-pcp-investigation

Fitch Ratings found that “2015 is the weakest vintage” of securitized loans.

 Fitch Ratings found that “2015 is the weakest vintage” of securitized loans.

www.autofinancenews.net/fitch-2015-losses-on-track-for-record-high/

As Banks Brake, Credit Unions Gain Bigger Share of Auto Loans

  As Banks Brake, Credit Unions Gain Bigger Share of Auto Loans

www.cutimes.com/2017/06/22/as-banks-brake-credit-unions-gain-bigger-share-of

Auto stocks stall as US skids toward used-car crisis Rising subprime loans, plunging vehicle values portend possible debt spiral

Auto stocks stall as US skids toward used-car crisis Rising subprime loans, plunging vehicle values portend possible debt spiral 

asia.nikkei.com/Markets/Tokyo-Market/Auto-stocks-stall-as-US-skids-toward-used-car-crisis

green4U X panoz racing GT-EV to be first ever all-electric car to attempt le mans

green4U X panoz racing GT-EV to be first ever all-electric car to attempt le mans

www.designboom.com/technology/green4u-panoz-all-electric-racer-06-16-2017/

‘Misleading’ car finance deals under fire as complaints soar

  ‘Misleading’ car finance deals under fire as complaints soar

https://inews.co.uk/essentials/lifestyle/cars/car-news/misleading-car-finance-deals-fire-complaints-soar/

ubitricity converts streetlamps to charge electric cars in london

 ubitricity converts streetlamps to charge electric cars in london

 www.designboom.com/technology/ubitricity-06-22-2017/

FCA consumer credit review sorely needed: Robert Sinclair

 FCA consumer credit review sorely needed: Robert Sinclair

https://www.mortgagestrategy.co.uk/fcas-consumer-credit-review-overdue-robert-sinclair/

Millennials are buying everything online — except cars

Millennials are buying everything online — except cars 

uk.businessinsider.com/millennials-buying-cars-dealerships-2017-6

Santander gets strong bid for subprime auto deal despite negative sector buzz

Santander gets strong bid for subprime auto deal despite negative sector buzz

www.globalcapital.com/article/b13jr9gy04g1sl/santander-gets-strong-bid-for-subprime-auto-deal-despite-negative-sector-buzz

Why are subprime auto loans still a thing?

  Why are subprime auto loans still a thing?

 https://www.marketplace.org/2017/06/21/economy/subprime-auto-loans-rates-why-worried-economy

Subprime Loan Volume Reaches Record Low, Experian Finds

Subprime Loan Volume Reaches Record Low, Experian Finds

www.autofinancenews.net/subprime-loans-reach-record-low-experian-finds/

UK subprime lender Provident Financial warns on profit over operational disruption

UK subprime lender Provident Financial warns on profit over operational disruption

www.dnaindia.com/business/report-uk-subprime-lender-provident-financial-warns-on-profit-over-operational-disruption-2479176

Ford says new Focus cars to be initially sourced from China

Ford says new Focus cars to be initially sourced from China

www.reuters.com/article/ford-motor-focus-idUSL3N1JH3YX

Are Subprime Auto Loans Forming a New Consumer Lending Bubble?

Are Subprime Auto Loans Forming a New Consumer Lending Bubble? 

www.groundreport.com/subprime-auto-loans-forming-new-consumer-lending-bubble/

Beware the Stock Market Forecast for the Next 3 Months (Q3 2017) Wall Street in 2017 Is Like Pompeii in 79 AD

  Beware the Stock Market Forecast for the Next 3 Months (Q3 2017) Wall Street in 2017 Is Like Pompeii in 79 AD 

https://www.lombardiletter.com/stock-market-forecast-next-3-months-q3-2017/12918/

Keiser Report: #Carmageddon (E1086)

  Keiser Report: #Carmageddon (E1086)

https://www.youtube.com/watch?v=8X27nX2GoZU

Good Luck Getting Out Of That Subprime Auto Loan When Used Car Prices Crash

  Good Luck Getting Out Of That Subprime Auto Loan When Used Car Prices Crash

www.zerohedge.com/news/2017-06-19/good-luck-getting-out-subprime-auto-loan-when-used-car-prices-crash

Fitch keeps stable ABS outlook despite turbulence

  Fitch keeps stable ABS outlook despite turbulence

www.autoremarketing.com/subprime/fitch-keeps-stable-abs-outlook-despite-turbulence

Subprime Loan Volume Reaches Record Low, Experian Finds

  Subprime Loan Volume Reaches Record Low, Experian Finds

www.autofinancenews.net/subprime-loans-reach-record-low-experian-finds/

The Car Was Repossessed, but the Debt Remains

 The Car Was Repossessed, but the Debt Remains

https://www.nytimes.com/2017/06/18/business/dealbook/car-loan-subprime.html

Carmageddon Crashes into “the Recovery” Right on Schedule — EXACTLY as Predicted Here By ZeroHedge - June 16, 2017

Carmageddon Crashes into “the Recovery” Right on Schedule — EXACTLY as Predicted Here

http://www.zerohedge.com/news/2017-06-16/carmageddon-crashes-%E2%80%9C-recovery%E2%80%9D-right-schedule-%E2%80%94-exactly-predicted-here

 

By

 ZeroHedge

 -

June 16, 2017

Complaints about car finance rise 64% with car insurance not far behind

  Complaints about car finance rise 64% with car insurance not far behind

www.autoexpress.co.uk/car-news/consumer-news/99739/complaints-about-car-finance-rise-64-with-car-insurance-not-far-behind

This Toxic Trifecta for Auto Loans is Fueling #Carmageddon

  This Toxic Trifecta for Auto Loans is Fueling #Carmageddon

www.marketexpress.in/2017/06/this-toxic-trifecta-for-auto-loans-is-fueling-carmageddon.html

PCP car finance problems

PCP car finance problems- Discussed on BBC Radio 4

www.bbc.co.uk/programmes/b08q31ct#playt=0h33m14s

Another Bubble in the Making?

Another Bubble in the Making? 

www.insidesources.com/another-bubble-making/

U.S. subprime auto losses highest since the crisis

U.S. subprime auto losses highest since the crisis 

www.sltrib.com/home/5042122-155/us-subprime-auto-losses-highest-since

Subprime Auto Has ‘Credit Issues,’ Top ABS Analyst at BofA Says

Subprime Auto Has ‘Credit Issues,’ Top ABS Analyst at BofA Says 

https://www.bloomberg.com/news/articles/2017-06-12/subprime-auto-has-credit-issues-top-abs-analyst-at-bofa-says

Subprime Auto Bonds From 2015 May End Up Worst Ever, Fitch Says

Subprime Auto Bonds From 2015 May End Up Worst Ever, Fitch Says 

https://www.bloomberg.com/news/articles/2017-06-12/subprime-auto-bonds-from-2015-may-end-up-worst-ever-fitch-says

The student loans and auto loans markets are two of the only markets to increase in leverage after 2008.

 The student loans and auto loans markets are two of the only markets to increase in leverage after 2008.

 https://seekingalpha.com/article/4080696-nelnet-student-loan-play

General Motors And Ford: Who Is Better During A Subprime Auto Crisis?

  General Motors And Ford: Who Is Better During A Subprime Auto Crisis?

https://seekingalpha.com/article/4080682-general-motors-ford-better-subprime-auto-crisis

Subprime Auto Has ‘Credit Issues,’ Top ABS Analyst at BofA Says

Subprime Auto Has ‘Credit Issues,’ Top ABS Analyst at BofA Says 

 https://www.bloomberg.com/news/articles/2017-06-12/subprime-auto-has-credit-issues-top-abs-analyst-at-bofa-says

DRAMATIC DROP IN CAR SALES AFTER TAX CHANGE AND DIESEL CONCERNS

DRAMATIC DROP IN CAR SALES AFTER TAX CHANGE AND DIESEL CONCERNS 

https://www.driving.co.uk/news/dramatic-drop-in-car-sales-after-tax-change-and-diesel-concerns/

Daimler to begin production on light-duty electric truck

 Daimler to begin production on light-duty electric truck

www.greenfleet.net/news/12062017/daimler-begin-production-light-duty-electric-truck

Americans are suddenly defaulting on their credit cards

 Americans are suddenly defaulting on their credit cards

www.businessinsider.in/Americans-are-suddenly-defaulting-on-their-credit-cards/articleshow/59070247.cms

Falling used-vehicle prices fuel the growth in negative equity

Falling used-vehicle prices fuel the growth in negative equity

www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619988/falling-used-vehicle-prices-fuel-the-growth-in-negative-equity

Negative equity adds to GAP lossesExec: Problem likely to worsen in near term

Negative equity adds to GAP lossesExec: Problem likely to worsen in near term

www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619998/negative-equity-adds-to-gap-losses

Debt fears over new car deals that only need a £300 deposit: Concerns controversial plans have helped fuel borrowing binge

 Debt fears over new car deals that only need a £300 deposit: Concerns controversial plans have helped fuel borrowing binge

www.dailymail.co.uk/news/article-4594382/Debt-fears-new-car-deals-need-300-deposit.html

Big auto lenders save up for higher losses Tighter credit, especially in subprime, expected

 Big auto lenders save up for higher losses Tighter credit, especially in subprime, expected

www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619985/big-auto-lenders-save-up-for-higher-losses

Bank Fraud Auto Credit - Finance Application Beautification - Here's how they do it

Bank Fraud Auto Credit - Finance Application Beautification

www.insider-car-buying-tips.com/bank_fraud.html

$25 oil is coming, and a new world order along with it, think tanks says

 $25 oil is coming, and a new world order along with it, think tanks says

www.cnbc.com/2017/05/23/reporters-notebook-be-warned-us25-oil-is-coming-and-along-with-it-a-new-world-order.html

How credit unions are ferreting out dealer fraud in auto lending

How credit unions are ferreting out dealer fraud in auto lending

https://www.cujournal.com/slideshow/how-credit-unions-are-ferreting-out-dealer-fraud-in-auto-lending

PCP - Personal finance sets traps for dinosaurs

PCP - Personal finance sets traps for dinosaurs

https://www.ft.com/content/f0422a76-3004-11e7-9555-23ef563ecf9a

It is difficult to explain quite how PCPs work, but easy to see the problem. Graham Hill, of the National Association of Commercial Finance Brokers, told the FT recently that using a PCP, drivers could pay less for a new BMW or Mercedes than for a second-hand Ford Focus. Or, as Bob the Dinosaur might put it, “they just make you sign papers!”

This miraculous effect is achieved by endlessly rolling over one quasi hire-purchase into another one, never quite buying a car. They are flattered by a buoyant used car market that is likely to sag before long. Yet manufacturers like them because they encourage people to buy new cars more often; car dealers like them because they generate more commission; and customers like them because the monthly payments are low. If you’re not worried yet, I have a car to sell you.

Some PCPs may be good value. The problem is that it is hard to tell. The closest analogy to a PCP — and it is not particularly close — is buying and selling a series of homes using interest-only mortgages. PCPs are a hybrid of several different financial products, part lease, part hire-purchase, and part option to choose between the two. Variables include contract length, the guaranteed value of the returned car, the deposit, purchase price of the car itself, maintenance contract tie-ins, mileage
allowances, and (of course) the interest rate.

There is no reason to think customers can navigate these complexities. Suzanne Shu, an economist at UCLA, has shown that picking the cheapest mortgage deals is a problem that will fox even MBA students. PCPs are harder.

This Perfect Storm Could Threaten U.S. Transportation

 This Perfect Storm Could Threaten U.S. Transportation

www.triplepundit.com/2017/05/poverty-ridesharing-created-wobbly-automobile-loan-market/

Germany’s ‘Very Bad’ Export Problem Never mind autos, surplus savings are the bigger threat.

 Germany’s ‘Very Bad’ Export Problem Never mind autos, surplus savings are the bigger threat.

https://www.bloomberg.com/news/articles/2017-06-09/trump-should-note-germany-very-bad-export-problem-capital-not-cars

Bad loans problem in US: Trump’s America is facing a $13 trillion consumer debt hangover, a new record high

Bad loans problem in US: Trump’s America is facing a $13 trillion consumer debt hangover, a new record high

www.financialexpress.com/economy/bad-loans-problem-in-us-trumps-america-is-facing-a-13-trillion-consumer-debt-hangover-a-new-record-high/704363/

The Growing Problem Of Subprime Auto Loans In The US – How It Works.

 The Growing Problem Of Subprime Auto Loans In The US – How It Works.

https://www.itmtrading.com/blog/subprime-auto-loans-in-us/

 Pop Goes The Car Bubble... And It May Not Be a Bad Thing  

www.zerohedge.com/news/2017-06-09/pop-goes-car-bubble-and-it-may-not-be-bad-thing

 

 

Fannie Mae Just Increased What You Can Borrow

Fannie Mae Just Increased What You Can Borrow

https://themortgagereports.com/29351/fannie-mae-just-increased-what-you-can-borrow

Auto Loan Fraud Losses Accelerate at Credit Unions

Auto Loan Fraud Losses Accelerate at Credit Unions

www.cutimes.com/2017/06/09/auto-loan-fraud-losses-accelerate-at-credit-unions

Tesla Supercharger Network: More Chargers In More Locations For 2017

 Tesla Supercharger Network: More Chargers In More Locations For 2017

www.ibtimes.com/tesla-supercharger-network-more-chargers-more-locations-2017-2529855

The Finance & Leasing Association (FLA) cannot provide figures to support its assertion that auto lenders are following conservative credit guidelines

The Finance & Leasing Association (FLA) cannot provide figures to support its assertion that auto lenders are following conservative credit guidelines

https://www.theguardian.com/business/2017/jun/10/car-loans-personal-contract-plans-vehicle-financial-crisis-pcp

Are cheap car loans the vehicle taking us to the next financial crash?

 Are cheap car loans the vehicle taking us to the next financial crash?

 https://www.theguardian.com/business/2017/jun/10/car-loans-personal-contract-plans-vehicle-financial-crisis-pcp

Industry cheers as CFPB reform measure passes House

Industry cheers as CFPB reform measure passes House 

www.autoremarketing.com/subprime/industry-cheers-cfpb-reform-measure-passes-house

A Crisis Brewing For Auto Loans?

  A Crisis Brewing For Auto Loans?

https://seekingalpha.com/article/4080137-crisis-brewing-auto-loans

Subprime auto-loan delinquencies have almost reached the Great Recession peak of 4.7%... Consumer credit is heading down the drain

Subprime auto-loan delinquencies have almost reached the Great Recession peak of 4.7%... Consumer credit is heading down the drain. https://twitter.com/steve_hanke/status/871740898207383552/photo/1

Webinar scheduled on increasing auto loans for credit unions during slowdown

 Webinar scheduled on increasing auto loans for credit unions during slowdown

https://www.cuinsight.com/press-release/webinar-scheduled-increasing-auto-loans-credit-unions-slowdown

The Subprime Auto Market: An Aging Bull or Curbside Clunker

 The Subprime Auto Market: An Aging Bull or Curbside Clunker

pro.newsmovingmarkets.com/2017/06/the-subprime-auto-market-aging-bull-or.html

Ford to offer one month car finance deals in the US

  Ford to offer one month car finance deals in the US

www.autoexpress.co.uk/ford/99702/ford-to-offer-one-month-car-finance-deals-in-the-us

Auto Trader shares go into reverse over car market fears

Auto Trader shares go into reverse over car market fears

www.telegraph.co.uk/business/2017/06/08/auto-trader-shares-go-reverse-car-market-fears/

Long-Term Auto Loans: How to Avoid the Debt Trap

 

 https://cars.usnews.com/cars-trucks/long-term-auto-loans-how-to-avoid-the-debt-trap

Normal monsoon to boost commercial vehicle loans: Moody's, ICRA

Normal monsoon to boost commercial vehicle loans: Moody's, ICRA 

auto.economictimes.indiatimes.com/news/policy/normal-monsoon-to-boost-commercial-vehicle-loans-moodys-icra/59054533

Canadians keep up long-running credit binge in 1st quarter of 2017

  Canadians keep up long-running credit binge in 1st quarter of 2017

www.cbc.ca/news/business/transunion-first-quarter-2017-1.4151237

Carvana: Disguised As 'Disruption' In The Used Car Sales Business Backed By Unethical Management

  Carvana: Disguised As 'Disruption' In The Used Car Sales Business Backed By Unethical Management

https://seekingalpha.com/article/4079561-carvana-disguised-disruption-used-car-sales-business-backed-unethical-management

Technology Helps Keep Repossession Rate Low, Kinecta CU Says

  Technology Helps Keep Repossession Rate Low, Kinecta CU Says

www.autofinancenews.net/technology-helps-keep-repossession-rate-low-kinecta-cu-says/

Auto Industry Past Its Prime

www.investopedia.com/news/six-trends-could-hammer-markets-spx-djia/
 

Auto Industry Past Its Prime

The auto industry is past its cyclical peak, as sales have been falling, wrote Rivelle. Manufacturer incentives—which at the time of report accounted for more than 10% of new car prices—have been propping up this activity, but sales have been falling anyway, he emphasized, citing Bloomberg, TrueCar and TCW data. The used car market has also been showing signs of weakness, as the value of these vehicles has plunged 10% since the start of January, J.D. Power Valuation Services reveals.

Read more: Six Trends That Could Hammer the Markets (SPX, DJIA) | Investopedia http://www.investopedia.com/news/six-trends-could-hammer-markets-spx-djia/#ixzz4jRSnScLZ 
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Why Supbprime Auto Loans Default

Why Subprime Auto Loans Default

www.nber.org/digest/dec07/w13067.html

UBS Blames Fed For "Crisis High" Subprime Defaults; Says Auto Is Just The Beginnning

  UBS Blames Fed For "Crisis High" Subprime Defaults; Says Auto Is Just The Beginnning

www.zerohedge.com/news/2017-04-04/ubs-blames-fed-crisis-high-subprime-defaults-says-auto-just-beginnning

Auto financing continues to be one of the fastest growing segments in the Canadian consumer credit marketplace

Auto financing continues to be one of the fastest growing segments in the Canadian consumer credit marketplace  www.autoremarketing.com/arcanada/auto-financing-remains-healthy-growth-payment-path

US car sector hit after analysts lower sales outlook Morgan Stanley reduces estimates on share prices for 15 companies including Ford

US car sector hit after analysts lower sales outlook Morgan Stanley reduces estimates on share prices for 15 companies including Ford

https://www.ft.com/content/84dae00e-4c63-11e7-919a-1e14ce4af89b

The auto industry may soon face an 'unprecedented buyer's strike,' Morgan Stanley says

The auto industry may soon face an 'unprecedented buyer's strike,' Morgan Stanley says 

www.cnbc.com/2017/06/08/auto-industry-may-face-an-unprecedented-buyers-strike-morgan-stanley.html

The Subprime 2.0 Debt Bubble is About to Burst

The Subprime 2.0 Debt Bubble is About to Burst 

www.marketoracle.co.uk/Article59307.html

Buyer beware as nearly half of used cars have hidden history

Buyer beware as nearly half of used cars have hidden history 

https://inews.co.uk/essentials/lifestyle/cars/car-news/buyer-beware-nearly-half-used-cars-hidden-history/

What bubble? Riskier car-lending is dropping, credit agency says Published: June 7, 2017

  What bubble? Riskier car-lending is dropping, credit agency says Published: June 7, 2017

www.marketwatch.com/story/what-bubble-riskier-car-lending-is-dropping-credit-agency-says-2017-06-07

EU lawmakers reach deal on securitisation market reforms

EU lawmakers reach deal on securitisation market reforms

https://www.ft.com/content/6870f240-bb19-369b-b069-3f6247078cc4

Steve Eisman of ‘The Big Short’ fame has a cautious eye on subprime auto loans

Steve Eisman of ‘The Big Short’ fame has a cautious eye on subprime auto loans 

www.marketwatch.com/story/steve-eisman-of-the-big-short-fame-has-a-cautious-eye-on-subprime-auto-loans-2017-04-01

Volkswagen sells €1bn Spanish auto-backed securitisation

 Volkswagen sells €1bn Spanish auto-backed securitisation 

https://www.ft.com/content/019db6d6-5703-3af7-a6b8-d0392c8d759a

"The €1bn transaction is securitised with receivables from Volkswagen’s Spanish subsidiary, and has the lowest pricing ever from that issuer. Securitisation, commonly used with mortgages, auto loans and credit card debt, is a process where assets are transformed into bonds that are sold on to capital markets investors. The order book was 2.6 times oversubscribed, according to Volkswagen.."

13 finance companies assemble to talk fraud - Automotive Lending Fraud Consortium

 13 finance companies assemble to talk fraud -  Automotive Lending Fraud Consortium

www.autoremarketing.com/subprime/13-finance-companies-assemble-talk-fraud

Q1 data disputes ‘subprime bubble' talk again

  Q1 data disputes ‘subprime bubble' talk again 

www.autoremarketing.com/subprime/q1-data-disputes-‘subprime-bubble-talk-again

Capital One's Auto Lending Push Will Hurt If Industry Conditions Deteriorate

  Capital One's Auto Lending Push Will Hurt If Industry Conditions Deteriorate  

https://www.forbes.com/sites/greatspeculations/2017/06/06/capital-ones-auto-lending-push-will-hurt-if-industry-conditions-deteriorate/

Lenders hit the brakes on subprime auto loans

  Lenders hit the brakes on subprime auto loans  www.cnbc.com/2017/06/07/lenders-hit-the-brakes-on-subprime-auto-loans.html

Codeweavers reveals most popular PCPs for car finance

 Codeweavers reveals most popular PCPs for car finance

 www.motortrader.com/motor-trader-news/automotive-news/codeweavers-reveals-popular-pcps-car-finance-15-05-2017

Europcar has launched a long term rental scheme, which it claims offers a cheaper and more flexible alternative to the traditional Personal Contract Purchase (PCP).

Europcar has launched a long term rental scheme, which it claims offers a cheaper and more flexible alternative to the traditional Personal Contract Purchase (PCP).

https://www.honestjohn.co.uk/news/money-saving/2017-06/europcar-offers-long-term-rental-as-an-alternative-to-pcp/

A 'great debt unwind' has begun - US Bankruptcies up 5%

A 'great debt unwind' has begun - Bankruptcies up 5%

http://www.businessinsider.com/commercial-business-bankruptcies-2017-6

    Total US business bankruptcies in May rose 4.7% year-over-year to 3,572 filings, according to the American Bankruptcy Institute.

That’s up 40% from May 2015 and up 10% from May 2014.And there’s another concern: Bankruptcy filings are highly seasonal. They peak in tax season – March or April – and then fall off. The decline in April after the peak in March was within that seasonal pattern.

Over the past years, filings dropped in May. But not this year. This year, they jumped:

http://www.abi.org/newsroom/bankruptcy-headlines/total-may-bankruptcy-filings-increase-5-percent-over-last-year

Household debt tops 2008 peak ahead of financial crisis 

https://www.usatoday.com/story/money/2017/05/17/household-debt/101774626/

One in five drivers don’t research car finance options

One in five drivers don’t research car finance options

news.motors.co.uk/news/one-in-five-drivers-dont-research-car-finance-options/

Witness to Another Bubble?

 Witness to Another Bubble?
www.wdel.com/blogs/on-the-money/witness-to-another-bubble/article_993b3fbc-4a06-11e7-8305-07bebb3b0427.html

Car trouble (Radio Times)

Car trouble (Radio Times)

www.radiotimes.com/money/news/car-trouble/62190.html

Motor financing software firm Alfa eyes £800m stock market debut

Motor financing software firm Alfa eyes £800m stock market debut

www.telegraph.co.uk/business/2017/05/08/motor-financing-software-firm-alfa-eyes-800m-stock-market-debut/

Concern over scale of unregulated finance for new cars

Concern over scale of unregulated finance for new cars

www.irishtimes.com/business/personal-finance/concern-over-scale-of-unregulated-finance-for-new-cars-1.3093726

Car sales nervously reliant on PCP

Car sales nervously reliant on PCP

www.irishtimes.com/life-and-style/motors/car-sales-nervously-reliant-on-pcp-1.3088002

Irish Concerns over PCP car loans Radio Podcast

Irish Concerns over PCP car loans Radio Podcast 

https://player.fm/series/rt-drivetime/concerns-over-pcp-car-loans

Are PCPs close to the edge? 01/06/2017

 Are PCPs close to the edge? 01/06/2017
www.am-online.com/dealer-management/finance-and-insurance/are-pcps-close-to-the-edge

How car dealers can avoid the finance hazards

 How car dealers can avoid the finance hazards

www.am-online.com/dealer-management/finance-and-insurance/how-car-dealers-can-avoid-the-finance-hazards

I thought my car finance deal let me hand it back at the end... but now I've discovered I have to pay £5,000 and keep it

I thought my car finance deal let me hand it back at the end... but now I've discovered I have to pay £5,000 and keep it

www.thisismoney.co.uk/money/cars/article-4469742/Why-won-t-car-finance-let-hand-PCP-vs-HP.html

New cars go into reverse: Industry body blames election for declining registrations but diesel sales have slumped 20% TA's blaming election

New cars go into reverse: Industry body blames election for declining registrations but diesel sales have slumped 20%

www.thisismoney.co.uk/money/cars/article-4573578/New-cars-reverse-diesel-sales-drop-20.html

Fears over scale of unregulated finance plans for cars in Ireland

Fears over scale of unregulated finance plans for cars in Ireland

https://www.thetimes.co.uk/edition/ireland/fears-over-scale-of-unregulated-finance-plans-for-cars-s08hqm2v8

Consumer car finance grows despite falling diesel values and looming legislation

 Consumer car finance grows despite falling diesel values and looming legislation

https://www.autocar.co.uk/car-news/new-cars/consumer-car-finance-grows-despite-falling-diesel-values-and-looming-legislation

Toyota sells stake in Tesla as partnership dies Share disposal comes as Toyota prepares to launch its own purely electric car

Toyota sells stake in Tesla as partnership dies Share disposal comes as Toyota prepares to launch its own purely electric car

www.irishtimes.com/life-and-style/motors/toyota-sells-stake-in-tesla-as-partnership-dies-1.3107676

£5bn Worth of Cars Put on Finance Deals in March

 £5bn Worth of Cars Put on Finance Deals in March

 https://www.moneyexpert.com/loans/5bn-worth-cars-put-finance-deals-march/

Young Chinese in the red as easy auto credit drives up debt

Young Chinese in the red as easy  auto credit drives up debt 

https://au.news.yahoo.com/world/a/35672074/young-chinese-in-the-red-as-easy-credit-drives-up-debt/#page1

UK diesel sales slump could spell disaster for Irish car values

  UK diesel sales slump could spell disaster for Irish car values 

www.irishtimes.com/life-and-style/motors/uk-diesel-sales-slump-could-spell-disaster-for-irish-car-values-1.3109362

The Next Subprime Crisis Is Here: 12 Signs That The US Auto Industry's Day Of Reckoning Has Arrived

 

http://www.zerohedge.com/news/2017-04-04/next-subprime-crisis-here-12-signs-us-auto-industrys-day-reckoning-has-arrived

Aston Barclay: Massive car auction site is coming to Donington Park

  Aston Barclay: Massive car auction site is coming to Donington Park

www.derbytelegraph.co.uk/massive-car-auction-site-is-coming-to-donington-park/story-30373619-detail/story.html

Haunting Photos of Carmageddon : Hyundai Gets Crushed, as GM, Ford, Others Struggle

  Haunting Photos of  Carmageddon : Hyundai Gets Crushed, as GM, Ford, Others Struggle 

http://wolfstreet.com/2017/06/02/inventory-unsold-cars-hyundai-sales-crushed-gm-ford-others-struggle/

Ford Credit About To Blow Up In Another Subprime Crisis? I'm Not Worried

 Ford Credit About To Blow Up In Another Subprime Crisis? I'm Not Worried

https://seekingalpha.com/article/4078690-ford-credit-blow-another-subprime-crisis-worried

Subprime auto numbers don't look good — but there's more to the story

Subprime auto numbers don't look good — but there's more to the story

uk.businessinsider.com/subprime-auto-numbers-dont-look-good-but-theres-more-to-the-story-2017-6

Summer Storm Keeps Building as Second Dip of Great Recession Approaches

Summer Storm Keeps Building as Second Dip of Great Recession Approaches   http://news.goldseek.com/GoldSeek/1496671500.php

Auto Industry Looks Precariously Close To Collapse (CARZ)

 

 Auto Industry Looks Precariously Close To Collapse (CARZ)

https://etfdailynews.com/2017/05/30/auto-industry-looks-precariously-close-to-collapse-carz/

Fed governor: No 'flashing red' signs of financial bubbles

Fed governor: No 'flashing red' signs of financial bubbles

www.washingtonexaminer.com/fed-governor-no-flashing-red-signs-of-financial-bubbles/article/2624451

America's Auto Bubble

America's Auto Bubble

https://www.fitsnews.com/2017/06/05/americas-auto-bubble/

Subprime 2.0: Lending a $1 Trillion to People With No Proof of Job or Income

http://www.marketoracle.co.uk/Article59181.html

 

PCP FINANCE THE PIT FALLS

PCP FINANCE THE PIT FALLS

http://www.westportcu.ie/pcpfinance

New York City Sues Car Dealer After Accusations of Loan Fraud

New York City Sues Car Dealer After Accusations of Loan Fraud

www.nbcnewyork.com/news/local/Auto-Loan-Fraud-Subprime-Lawsuit-Major-World-Car-Dealer-New-York-City-Consumer-Affairs-Sue-421622913.html

Subprime Auto Loan Co. Execs Cop To $11M Fraud

 Subprime Auto Loan Co. Execs Cop To $11M Fraud 

https://www.law360.com/articles/928645/subprime-auto-loan-co-execs-cop-to-11m-fraud

Americans Aren’t Noticing This Major Economic Collapse Risk

  Americans Aren’t Noticing This Major Economic Collapse Risk By Alessandro Bruno BA, MA | May 30th, 2017

https://www.lombardiletter.com/americans-arent-noticing-this-major-economic-collapse-risk/12144/

As Americans take on more debt, some pockets of concern

  As Americans take on more debt, some pockets of concern

triblive.com/business/headlines/12350577-74/as-americans-take-on-more-debt-some-pockets-of-concern

Are PCPs close to the edge?

  Are PCPs close to the edge?

www.am-online.com/dealer-management/finance-and-insurance/are-pcps-close-to-the-edge

U.S. Auto Industry In Peril Amid Weak Sales, High Inventories

  U.S. Auto Industry In Peril Amid Weak Sales, High Inventories 

https://etfdailynews.com/2017/06/02/u-s-auto-industry-in-peril-amid-weak-sales-high-inventories-carz/

Why Consumers Aren't Spending

Why Consumers Aren't Spending   

https://www.bloomberg.com/view/articles/2017-06-02/why-consumers-aren-t-spending

As Americans take on more debt, some pockets of concern

As Americans take on more debt, some pockets of concern  

https://www.usatoday.com/story/money/personalfinance/2017/06/02/americans-take-more-debt-some-pockets-concern/102345720/

Britain's preferred car-loans are incomprehensible financialized garbage: what could go wrong?

  Britain's preferred car-loans are incomprehensible financialized garbage: what could go wrong? 

https://boingboing.net/2017/06/02/subprime-autos.html

US light vehicle sales continue to soften

US light vehicle sales continue to soften 

www.just-auto.com/news/us-light-vehicle-sales-continue-to-soften_id176855.aspx

insolvencies were up 4.5 percent from the fourth quarter of 2016 to the first quarter of this year

insolvencies were up 4.5 percent from the fourth quarter of 2016 to the first quarter of this year

 http://www.pymnts.com/sizzlefizzle/2017/fraud-detection-sizzles-iphone-shares-fizzle-and-some-upbeat-economic-news/

Dublin-based First Citizen refinances €158m of car loans

Consumer finance firm’s sale of bonds opens up new avenue of funding for the industry

 http://www.irishtimes.com/business/financial-services/dublin-based-first-citizen-refinances-158m-of-car-loans-1.3105998

 

6 million people may have cars repossessed in 2017

  6 million people may have cars repossessed in 2017

www.needhelppayingbills.com/blog/6-million-may-have-cars-repossessed-2017/

Is the New Car Bubble Bursting in the United States?

Is the New Car Bubble Bursting in the United States?

www.thedrive.com/sheetmetal/11064/is-the-new-car-bubble-bursting-in-the-united-states

The Subprime Auto Bubble Is Losing Air

  The Subprime Auto Bubble Is Losing Air

https://www.aier.org/research/subprime-auto-bubble-losing-air

FT: US Banks Fear Subprime Bubble in $1.2 Trillion Auto Loans Market

 FT: US Banks Fear Subprime Bubble in $1.2 Trillion Auto Loans Market

www.newsmax.com/Finance/StreetTalk/Banks-Subprime-Bubble-Auto/2017/05/30/id/793026/

Three factors driving the current auto loan bubble

Three factors driving the current auto loan bubble 

www.nydailynews.com/autos/news/factors-driving-current-auto-loan-bubble-article-1.3153478

Remember the Housing Bubble of 2008? Meet the Car Loan Bubble of 2017

  Remember the Housing Bubble of 2008? Meet the Car Loan Bubble of 2017

theantimedia.org/car-loan-bubble-2017/

Global debt woes are building up to a tidal wave "Virtually every class of US debt — sovereign, corporate, unsecured household/personal, auto loans and student debt — is at record highs"

Global debt woes are building up to a tidal wave 

Virtually every class of US debt — sovereign, corporate, unsecured household/personal, auto loans and student debt — is at record highs

https://www.ft.com/content/3215e960-3faa-11e7-9d56-25f963e998b2

"I suspect that a stealth cash for clunker program is in play as well."

"I suspect that a stealth cash for clunker program is in play as well."

"Some companies are being open about it. I think Hyundai are doing it locally. Not calling it that, of course.
Doesn't count if it has a different name, does it? QE is not fraud because it's not called fraud."

http://www.zerohedge.com/news/2017-05-31/new-warning-signs-emerge-subprime-auto-securitizations

New Warning Signs Emerge For Subprime Auto Securitizations

  New Warning Signs Emerge For Subprime Auto Securitizations http://www.zerohedge.com/news/2017-05-31/new-warning-signs-emerge-subprime-auto-securitizations

Mixed Auto Sales Results For May Despite Heavy Holiday Promotion

 Mixed Auto Sales Results For May Despite Heavy Holiday Promotion

https://www.benzinga.com/analyst-ratings/analyst-color/17/06/9551452/mixed-auto-sales-results-for-may-despite-heavy-holiday-p

Another Bubble in the Making? By Alvaro Vargas Llosa

  Another Bubble in the Making? By Alvaro Vargas Llosa

http://blog.independent.org/2017/05/18/another-bubble-in-the-making/