There’s been a lot of chatter lately about a potential bubble forming as a result of subprime lending in the automotive industry. Phil LeBeau, at CNBC, recently interviewed Dennis Carlson, Deputy Chief Economist at Equifax, to get his take on the issue.
Carlson, and analysts at Equifax, looked at data for new and used cars for the first three months of 2015. Based on their research, the percentage of subprime auto loans has increased slightly, but not by a large enough number to be of concern. His conclusion?
Carlson says he doesn’t see a subprime auto bubble forming. “We have a very healthy auto lending market right now. Lenders are doing a better job” says Carlson.
Click here to see more from this interview.