Trust the data: Auto lending is sound
Jonathan Smoke shares his industry view.
As a former real estate economist now firmly ensconced in the automotive industry, I’ve enjoyed comparing and contrasting the trends, drivers and characteristics of the two industries that represent the biggest purchases consumers make.
Despite all of the negative headlines suggesting automotive lending could be the next financial disaster, I’ve developed a new appreciation for auto lending’s overall health and importance.
Subprime lending plays a key role in the automotive market, yet the media often portray subprime lending as a problem part of the market, implying there shouldn’t be subprime lending at all.