We have auto sales growth stabilizing, note that yearly growth has declined. The dark green are the sub-prime borrowers, and about 1.4 of them will default and return a good car to the used car market. We are going to get a regime change in the auto market with used cars competing for sales. It will be a sudden stop, hopefully a short adjustment. If a stoppage happens this year, like next quarter, watch out; a lot of sudden stops happen at the end of the sequence.
No comments:
Post a Comment