Source: Coyote Blog
by Warren Meyer
“Yes, I know. A meltdown in subprime auto loans has been predicted almost every year of the past decade. I am not an economist or stock analyst, so take all this with a shaker of salt, but here is the new factor that I don’t think is being discussed much in the context of subprime auto loans: the end of student loan forgiveness …. there is a large overlap between households with student loans, particularly those with non-performing student loans, and those with sub-prime auto loans. Borrowers delinquent to both a bank for auto loans and to the US government for their student loans will quickly learn that only one of these lenders has the legal power to force their debt to the top of the debt repayment stack.” (07/13/25)
https://coyoteblog.com/coyote_blog/2025/07/sub-prime-auto-loans-the-next-financial-crisis.html