Wells Fargo & Edmunds Just Rang The Auto Industry ALARM BELL | Episode 936
About this episode
Wells Fargo's recent move to approve riskier auto loans has raised alarms in the automotive finance industry, with credit scores as low as 540 qualifying for loans up to 150% of a vehicle's value. The episode discusses the implications of this trend, drawing parallels to the 2008 financial crisis, and highlights the increasing number of subprime borrowers. Additionally, the hosts analyze Edmunds data revealing rising auto loan delinquencies and the impact of aggressive lending practices on the market's stability. The conversation underscores the precarious state of auto financing and consumer debt.
Ford F150
"So this begs the question pop yes, why is Wells Fargo here? I'll pull it up from Orange River Ducky. Interesting. Why would a business want to get into riskier things what what's what's driving this. It's also coming on the heels of we talked about Ford earlier in the week doing more subprime lending. Like why are the why are we seeing more of these companies get into riskier and riskier things here just to flash forward lowers F 150 rates for subprime buyers. Like all of this is about getting more subprime customers. Why are they doing this to give the appearance that they will end up being more profitable when in all likelihood it will have the opposite outcome."
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.