Auto Loan Delinquencies Surge 50% As The U.S. Heads Into A Bloodbath!

Auto loan delinquencies surge 50% as the U.S. heads into unseen territory. We're currently seeing cracks in all the local and regional banks around the country who are being crippled by these defaults along with other credit lines they're exposed to and it appears it's too late to save any of these ships. We have hundreds of billions of dollars in both subprime and prime car loans, home loans, and lines of credit that are 90 days plus delinquent. Now, this doesn't mention the $2 trillion plus credit card debt the U.S. consumer holds that are actually defaulting at record levels. We're about to see a bloodbath in Main Street America that will be deep enough to spread quickly to Wall Street America. Everyone knows it's coming, or really it's already here, except for the consumer. This week, Zions Bank and Western Alliance disclosed that they had been victims of loan fraud tied to funds investing in distressed commercial real estate. Y'all must realize that every building in the U.S. is empty after the COVID episode. Yes, more than 50% of the commercial buildings are empty in the U.S. now. Let me assure you, that's not good for business. Shifting our focus back to autos, there's new data this morning about this credit product. tied to the riskier consumers that have seen a more than 50% surge in delinquencies. These loans are 60 and 90 days delinquent. Bloomberg cites data from the credit scoring company VantageScore, which reveals that delinquencies among the low-tier consumers have surged 50% from this time last year when we were already I'm already in huge trouble. Fueling the delinquencies is a perfect storm of record high car prices, elevated interest rates, longer loan terms, higher monthly payments that average nearly as much as rent for some families, not to mention increase in insurance costs. Since 2019 the average vehicle price has jumped It's well over 30%. to over $50,000, while average monthly payments have reached $767 for one vehicle, with 20% of the borrowers paying over $1,000 per month for their vehicle. Loan rates now exceed 9% depending on credit, worsening the affordability crisis. Notably, prime and near-prime borrowers are now defaulting faster than subprime consumers as lenders have tightened standards for the lowest credit segment according to the same report. The average auto loan balance has risen 57% since just a year ago, and many borrowers are upside down. Owning much more on their cars than they're worth, many automobile purchasers are even taking advantage of any equity they have in their automobiles via refinancing. In other words, they're completely broke. Out of the approximately $176 billion in U.S. auto loans, Making up the prime and subprime markets. Over $100 billion of that is 60 to 90 days delinquent. Quote, we are seeing the cost of cars and the cost related to car ownership increase enormously. VantageScore chief economist, Richard Vandeboe, said in an interview, in the past five years, it has increased faster than we've ever seen it. He continued, it's a double or triple whammy. You've been hit by the increased costs of the car and then the financing costs of the car. Not to mention the increase in insurance costs. He continued, consumers are now in a more precarious position than they've ever been in. We've seen this growing trend over the last several years of more and more consumers struggling to make ends meet. And it looks like the trend is going to continue into next year and further. He also mentions a sequence of alarming events unfolding in the credit markets in recent weeks. Let me tell you guys, it's going to get rough. Regional and local banks are about to start filing for bankruptcy because of all the credit defaults, including automobile loans, credit lines, Home loans and credit cards that are all coming up delinquent. This could start as early as next week, according to experts. These banks can't hold on much longer and will start closing their doors just like we saw in the early 80s. And that contagion will be spreading to the larger banks who have exposure to all the local and regional banks. The consumer has no savings. And over $2 trillion plus of credit card debt, which they're also defaulting at record levels. Expect this entire house of cards to come crumbling down on the banks and on the consumers very soon, as it does not appear that there's any way to avoid this. God bless you and yours, folks. Sounds like the apocalypse is here. Please share, subscribe, and always remember, anything's possible in Bizarro World.