Noticing some interesting data in the high rates of car repos that are going on right now. Lots and lots of Dodge Chargers/Challengers and Chrysler 300s being repossessed at record levels. Apparently these companies (and select banks) were financing cars with very high interest rates and with very high dealer market adjustments included in the financing agreements. What could go wrong?
The tragic irony is that Stellantis marketed these "deals" in low income communities at a time when everyone was receiving their stimulus checks from Uncle Sam. Fiat Chrysler Financing and the other banks that supported these financing deals are now holding the bag on thousands of unpaid loans. Now the party is over and these cars are being dumped in huge numbers on the wholesale auction market.
Imagine buying a MSRP $65,000 car with a $15-20,000 dealer market adjustment added to the MSRP price, and having a bank qualify low income individuals for such a deal. It's like the 2008 housing debacle all over again, but this time in the automobile sector. There is definitely something wrong with our financial system.