ilmscore | The Car Market Bubble Just Popped

The Car Market Bubble Just Popped

Published: 2022-06-29
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
Used car prices are predicted to fall by 20-30% due to increased supply in the market.
"KPMG predicts that used car prices could drop 30% as more suppliance the market and Ali Financial predicts a 20% decline."
Used Car Prices
Pending
The decline in used car prices is expected to begin unfolding within the next 12 to 18 months.
"the timing is a bit uncertain but it does look like it's starting to unravel over the next 12 to 18 months."
Used Car Prices
Pending
The government is issuing warnings about an increase in car repossessions, indicating that the auto loan market issues could worsen.
"the government is warning about a search in car repos and that the problems could get much worse unless we stay ahead of it."
Auto Loans
Pending
There's a concern that lenders have provided unaffordable loans without proper financial verification, and that these unsustainable values, exacerbated by the chip shortage, will eventually decline.
"lenders have potentially given buyers unaffordable loans without verifying their financials on values that can't be sustained without a chip shortage and it's only a matter of time until eventually things have to come down and return to normal."
Auto Loans
Pending
Used car prices have fallen 6.4% from their peak and have been declining for four consecutive months as supply chain issues improve.
"supply chain constraints production and ship manufacturing begin to improve used car prices are beginning to drop down 6.4% since the record high in January this also marks the fourth consecutive month that auto prices have fallen."
Used Car Prices
Pending
5% of US auto loans are delinquent, and nearly half of car buyers owe more on their loan than the car's current value.
"5% of auto loans in the US are behind on payments and nearly half are underwater where the buyer owes more on the car than what the car is actually worth."
Auto Loans
Pending
The era of used cars exceeding new car prices is ending, and the automotive industry is facing a potential collapse due to increasing defaults on predatory loans.
"the days of used cars selling for more than new is beginning to come to an end with the automotive industry on the brink of an autoone collapse that has the potential to shake out the entire Market as defaults begin to increase on predatory loans that never should have been issued to begin with."
Automotive Industry
Pending