Sub Prime Auto Loans Might Not Bubble After All

Illustration for article titled Sub Prime Auto Loans Might Not Bubble After All

Our friends over at Bloomberg have some excellent analysis as to why the record number of sub-prime auto loans does not necessarily mean an economically devastating bubble.


When sub-prime loans first started to grow several economists started to get concerned about what this could mean for the industry. So far, despite the rise in sub-prime lending car-buyers seem to be handling their payments just fine.


(Photo credit: Getty Images)

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it's a LOT easier to unload a car and take a few thousand dollar hit on it if you're underwater, than unload a several hundred thousand dollar home that you'd have to take a several tens of thousand dollar hit on (or more).

comparing the two was a bit of a stretch in the first place.