[sigstoat]

> Which means the book value for all cars goes down the toilet.

which isn't that big a deal, because average people aren't buying their cars as investments (or repeatedly refinancing them). your car still gets you to work just fine even if it is worth less than you owe. and that state of affairs would resolve itself in <5 years, even if you just bought it.

> So when they repo lots of cars due to a downturn the second hand market will crash.

that would only happen if folks could no longer service the debt on their vehicles. the amount of auto loan debt isn't evidence that will happen any time soon.

folks were able to "suddenly" develop problems servicing their mortgage debt because they'd gotten adjustable rate mortgages. adjustable rate loans for automobiles are much less of a thing.

[mcguire]

I'm not entirely sure leases aren't the ARMs of the car world.