Frozen Car Market - Rising Delinquencies, Flat Sales, and Election Impact

"former President Trump has talked about imposing tariffs on car manufacturers if you're manufacturing your cars in places like Mexico. So, what does that mean? If hypothetically, President, former President Trump is elected and he imposes these tariffs because he's talked about imposing 100% even 200% whatever it takes tariffs to stop car manufacturers from manufacturing the cars in Mexico, then that would mean that we're bringing car manufacturing back to the United States."

"But that also means that the cost to manufacture the car would likely go up as well because an employee in the United States is more expensive than an employee in Mexico. So that could mean that the production of the car becomes more expensive. You have more jobs in America, but the production of the car could become more expensive, which could potentially push up the price of cars."

"But what we do know is that the inventory of cars in America is also rising. What we saw is that the total number of cars unsold in October of 2024, this month, is up 25% from October 2023. And this is the highest number of cars unsold that we have seen since the beginning of the pandemic."

"Sure, we will eventually see a recession. Sure, we will eventually see a market crash. Nobody knows when. We know it's a part of our system."