SUBPRIME BLUES: These 10 Charts Reveal An Auto Bubble On The Brink.

U.S. auto sales have hovered well north of replacement rates for several years now on the back of an improving labor environment and more importantly an extremely accommodating financing market characterized by $0 down, 0% interest loans to subprime borrowers, with perpetually longer maturities to help manage monthly payments…because if your monthly payment is $500 you can afford it, right?

But, according to data presented in Experian’s Q3 2017 auto financing market update slides, the auto market may finally be on the brink of running right off the other side of Ford’s proverbial “Plateau.”

The situation doesn’t appear to be as bad as it was in 2007, but the coming correction would be gentler if Detroit could stay away from the channel-stuffing and the subprime borrowers.