Commentators in the industry have been prognosticating about a subprime auto loan bubble burst for years and it keeps not happening, for whatever reason. Frankly I’m a bit surprised it hasn’t happened yet, but without some sort of engineered soft landing it feels like it has to be coming eventually. Car prices keep going up, loan terms keep getting longer, and the cost of borrowing is punishing right now. Negative equity in new loans keeps rising too. It’s only going to take a small systemic blip in people’s ability to pay to create a sudden spike in repossessions.