With a record 16% of American consumers paying at least $1,000 a month for their cars, it's no surprise that drivers are starting to fall behind on their bills.
The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.
There are multiple factors driving this trend. Car financing costs are climbing as the Federal Reserve continues its aggressive campaign of interest rate hikes to combat persistent inflation.
At the same time, used car values are dropping, leaving debtors at risk of owing more money than their cars are actually worth.
My take is, when housing market takes a dive the stock market bubble will also get pricked.