Interesting thread on Twitter by Car Dealership Guy (CEO of a car dealer group who remains anonymous) regarding the current and forecasted look at cars/costs/loans/depreciation since that inflated valuation frenzy.
He predicts a wave of repossessions happening within this half of the year.
*this includes both EV and ICE Vehicles.

Generally speaking, this scenario is an unfortunate forecast because:

1. Vehicle values were very inflated over the last 2 years
2. Large vehicle loans were taken out
3. Some of these vehicles are now worth significantly less (This leads to the vehicle being upside down – meaning they owe more than vehicle is worth)
4. If consumer wants/needs to trade in for a new vehicle, the dealer recognizes that the vehicle is way overpriced
5. Dealer asks for a considerable amount down payment to cover the difference
6. Consumer may not have enough to cover that vastly growing difference
7. Here’s where the lenders come in- they allow a 2ND loan, knowing there is another active loan.
8. Lenders know that the necessity for a consumer’s 2nd loan many times leads to default
9. That’s when the repo man comes in.

Simply put:

“Dealer can’t sell consumer a car,
Consumer can’t buy a car,
And, you guessed it, lender can’t finance a car!
Everybody loses!…”

(EXCEPT- that’s when the 2nd loan comes in and subsequent default, followed by repossession.)

Lenders also were waiving Proof Of Income (POI) during 2020-2022. Car Dealership Guy says this won’t end pretty.

He digs deeper into this prediction in his free newsletter
https://dealershipguy.com/

Go electric ✌️