Subprime Auto Loans Outstanding

With all of the problems of sub-prime mortgage loans, it was only a matter of time before it would start to affect the auto loan industry. Well, that day has arrived, as sub-prime auto loans have just started feeling the pinch that the mortgage loan industry has been feeling for a long time now.

The number of sub-prime truck and auto loans alone total more than $34 billion outstanding. This does not include the hundreds of billions in auto loans that were made to creditors with bad to worse credit histories.

Many blame it on the political and economic climate, citing sources that show that the US is now ranked number seven for technology, and much of that is due to our economic and political problems that we have been having. They say that the more other industries are affected, and the fact that the US is looking at a loss of some 40 million jobs over the next two years due to globalization, that the number of sub-prime mortgage and auto loans that fall into delinquency will continue to increase.

Experts say that it could be the fact that the US currently has nine trillion in federal debt, and an $800 billion trade deficit, and the fact that many people keep calling for a recession – all of these things will factor in to where interest rates will fall. But for now, the industries that are feeling it the most are the auto loan and mortgage industries, and many feel that they are simply the tip of the iceberg.

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