The sub-prime auto loan market has captured a lot of attention in recent months from investors who believe it may be the next big bubble to burst.
While it is unclear if that will happen, another sign ofpotential trouble in the auto loan market has appeared.
Reuters reported on Thursday that payment terms are getting longer:
The average length of a loan on new vehicles was 67 months and for used vehicles, 63 months, remaining steady for the fourth quarter of 2014, [global information services group] Experian reported.
Longer-term financing of more than 73 months grew by 12 percent from a year earlier, to make up 29 percent of new-vehicle financing.
This post was published at David Stockmans Contra Corner on March 4, 2016.
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