Just as bad real estate lending led to a recession and car repossessions, can bad car lending lead to a decline in the housing market?.
Full blown car market crash is happening as we speak!
Lucky Lopez reported in July 24th that the lending spigot for cars has been closed. This is happening at the same time that repossessions are skyrocketing. Banks will be taking HUGE loses on these cars.
What does this mean for real estate?
That “Debt Profile” I keep talking about.
In addition to the crash of the car loan market, we can see that very similar actions were taken with those loans that just might push the overall markets just like the housing crash did. That would mean that it ends up pushing the real estate market into a downturn.
What does that mean for our markets?
If you have good credit, getting a car is about to become a deal.
The inventory of cars is about to jump and the number of qualified car buyers is about to dip. That will leave you with a potentially great deal if you have the credit score and the money to put down.
This all pushes the markets down – all of them. Including stocks and real estate.
Just looking at what is happening with real estate now, it is hard to imagine that a huge auto loan crash like this will not have a wider effect..
Check Out The Last Show!
In this weeks show we are looking at a few different bits of economic news that could push our real estate market one way or another. Not a lot of certainty in todays show, but I will offer what I think are prudent actions for buyers, sellers and investors to prepare for the possible eventualities