Used Car Loan Bubble Bursts as Defaults Rise and Predatory Lenders Face Lawsuits

Wall Street invested heavily in used-car loans, but now defaults and delinquencies are increasing.
Major used-car lenders like American Car Center and U.S. Auto Sales have collapsed recently.
Pandemic aid fueled increased used car sales and lending, but now that aid has ended.
The Consumer Financial Protection Bureau is suing some lenders like USASF and Credit Acceptance Corp for predatory practices.
The future of the used-car loan industry depends on the outcome of lawsuits against companies like Credit Acceptance Corp.

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8/31/2023

Squeezed Consumers Are Missing Credit Card, Auto Loan Payments

Americans facing high prices and interest rates are struggling to repay credit card and auto loans, leading to rising delinquencies and defaults with no immediate relief in sight, particularly for low-income individuals, as analysts expect the situation to worsen before it improves.