Is a subprime auto loan bubble ready to burst?

Description

Abstract: Automobile lending in the U.S. is booming, recently reaching the highest level since well before the Great Recession. But digging deeper into the numbers reveals one potentially disturbing trend: a sharp rise in the number of subprime auto loans being made — especially among auto finance companies. Are fears of a bursting subprime auto loan bubble overblown? This article discusses the arguments for and against. A sidebar offers a few tips for keeping legitimate subprime lending from becoming predatory.