A reminder: Tricolor’s main customer base is Hispanics. Part of their lending model of few or not background requirements meant: illegals.
I guess the collaterized loans obligations (CDO) that brought down the mortgage loan markets in 2008 are alive in the auto loan area today. Gee someone owes double on what a car is worth and has no job. What could go wrong. Fortunately I don’t think these loans have a government guaranteed, YET.
A lot of those financed cars and trucks are now in Mexico.