With more than $1 trillion in loans outstanding, the auto loan market is booming. Experian estimates that subprime loans represent $205 billion and $388 billion of that total.
subprime auto loans
- The Subprime Auto Loan Market Is About to Collapse – Here's How to Profit
- The Next Subprime Crisis Has Already Started
- Bank of America (NYSE: BAC), the Department of Justice, and Subprime Auto Loans
Reading about what's going on in the subprime auto lending space is a lot like reading about drive-by shootings.
Unless you're a subprime borrower, or live in a neighborhood where drive-bys are happening, you probably don't know much about either - or think they affect you.
But if you listen closely there's muffled financial "gunfire" already in your neighborhood.
And it's much closer to your doorstep than you think.
Bank of America Corp. (NYSE: BAC) is in tentative talks with the U.S. Department of Justice to pay between $16 billion to $17 billion for its part in selling shoddy mortgages, being a Too Big to Fail bank that wasn't allowed to fail but now has to pay the piper.
Today, I'm going to tell you the story behind this, and a story about subprime auto loans.