- Used car prices dropping as off lease contributes to glut (Chart 1 & Chart 2)
- Delinquencies continue to rise in subprime (Chart 3).
- Car loan terms exceeding 8 years preclude car buyers from trading in.
- Extended financing and used car prices could weigh on original equipment manufacturers and new car sales.
- Markets moving in tandem. Hard to find a place to hide with market shock¹.
- Lowest Volatility Index (VIX) since 2008 has investors complacent.
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