Part 10/11:
The current state of the car market raises serious red flags for economic stability. With high auto loan delinquency rates, falling vehicle values, and shrinking dealer margins, the sector resembles a house of cards that could collapse if consumer confidence and employment falter.
While some manufacturers and lenders are attempting to buck the trend by loosening lending standards, these moves could backfire if the underlying issues of over-indebtedness and declining asset values are not addressed. The coming months will be critical in determining whether this sector's turbulence will remain contained or trigger a broader economic downturn, reminiscent of the housing crisis nearly two decades ago.