{"id":4346,"date":"2015-01-10T13:01:52","date_gmt":"2015-01-10T18:01:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4346"},"modified":"2015-01-10T13:01:52","modified_gmt":"2015-01-10T18:01:52","slug":"subprime-spikes-auto-sales-delinquencies-soar-industry-in-total-denial-fallout-to-hit-main-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4346","title":{"rendered":"Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/01\/09\/subprime-auto-loans-spike-sales-industry-in-denial-implosion-to-hit-broader-economy-more-than-banks\/\" target=\"_blank\">Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street<\/a><\/h3>\n<p>New vehicle sales in the US have been on a tear in 2014, rising 5.6% to 16.5 million units, the highest since banner year 2006. Light-truck sales jumped 10%, cars edged up 1.8%. The industry is drunk with its own enthusiasm.<\/p>\n<p>General Motors CEO Mary Barra sees \u201cstill plenty of room for the auto industry to grow.\u201d She rattled off politically correct reasons: consumers who\u2019re \u201cfeeling pretty good about the future,\u201d due to \u201cthe strength of the labor market, better job security and the recovery in home prices,\u201d topped off by the \u201csharp drop in fuel prices and rising incomes,\u201d possibly\u00a0confusing their stagnant or declining incomes with\u00a0<em>her<\/em>\u00a0rising income.<\/p>\n<p>So sales could hit 17 million in 2015, she said in the\u00a0<a href=\"http:\/\/media.gm.com\/media\/us\/en\/gm\/news.detail.html\/content\/Pages\/news\/us\/en\/2015\/Jan\/0108-ceo.html\">statement<\/a>. It would take the industry back to the car-glory days of 2001. It\u2019s going to be younger buyers \u2013 the Holy Grail of everyone. They\u2019re not just moving out of their parents\u2019 homes, where they\u2019ve been holed up for years because they can\u2019t afford the soaring rents or home prices, but now they\u2019re also going to splurge on a set of wheels. Because it\u2019s a great time to buy.<\/p>\n<p>Interest rates for six-year new-car loans are as low as 2.75%, according to Bankrate.com. Loan terms can be stretched to seven years, to where these younger buyers will be awfully\u00a0close to middle-age before they finally get out from under it. Loan-to-Value ratios have soared well past 100%; everything can be plowed into the loan: title, taxes, license fees, cash-back, and the amount buyers are upside-down in their trade. The package is governed by loosey-goosey lending standards. Bad credit, no problem.<\/p>\n<p>And that\u2019s exactly the problem.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subprime Spikes Auto Sales, Delinquencies Soar, Industry in Total Denial, Fallout to Hit Main Street New vehicle sales in the US have been on a tear in 2014, rising 5.6% to 16.5 million units, the highest since banner year 2006. Light-truck sales jumped 10%, cars edged up 1.8%. The industry is drunk with its own [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,200,2563,2562,2564],"class_list":["post-4346","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-default","tag-delinquency","tag-subprime-auto-loans","tag-subprime-loans"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4346"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4346\/revisions"}],"predecessor-version":[{"id":4347,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4346\/revisions\/4347"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}