American Financial Services Association

Bursting the “Bubble” Myth

Blog Posts

Bursting the “Bubble” Myth

In times of economic uncertainty it is not a surprise that any number of economic prognosticators are out there opining and crystal-ball gazing, whether those views are based on facts or not.

One example of this is the myth of a “bubble” in the auto finance industry. While some folks are focused on which companies may or may not seek financial support from the federal government during the coronavirus pandemic and drawing conclusions, seeking such loans isn’t an indicator of the health of the overall industry. There have been plenty of studies that confirm that there is no such thing as a “bubble” related to the auto-finance industry, largely due to the cyclical nature of the marketplace. A few years ago, AFSA conducted an exhaustive study on the topic, which found exactly this. Economists of all stripes have also noted that there is no such thing.

April 10th, 2020 by