Auto-Loan Boom in U.S. Bringing More Bad Debt: Chart of the Day
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Auto loans are in the midst of a U.S. boom that is coming to “the end of the road,” according to Pierre Lapointe, head of global strategy and research at Pavilion Global Markets.
The CHART OF THE DAY shows the dollar value of motor-vehicle loans and year-to-year percentage changes, based on figures compiled quarterly by the Federal Reserve. The amount borrowed has climbed for 15 consecutive quarters, the longest streak since 2005. The second quarter’s increase, 9.2 percent, was the biggest since 2002.