by Tom Lewis, Gold Telegraph:
Used car sales have been up since 2008, and the price of used cars has been reasonable. Low-interest rates have made the purchase of used vehicles very affordable and auto loans easy to get. But economic reality has finally caught up with buyers as subprime loan delinquencies are increasing and expected to become worse.
Thanks to the Federal Reserve’s low-interest-rate policy, consumers have had a car-buying spree, with over $1.1 trillion in auto loans outstanding. As interest rates are rising, consumers are finding it more difficult to pay off old loans, while the number of new loans is down significantly.