Elon Musk: Auto Loans Could Be Source of ‘Biggest Financial Crisis Ever’,and these same people that took out these big loans are now ‘underwater.’ They owe banks more on these cars than they are worth, the banks are well-aware of the problem.

The automotive market may be under stress as several experts call for a massive wave of repossessions in early 2023, with prominent figures like Tesla founder Elon Musk and Ark Invest’s Cathie Wood sounding the alarm about the potential impact on financial markets.

“Potentially the biggest financial crisis ever,” Musk posted on Twitter Friday in response to a tweet by Wood and a series of tweets from the CEO of a car dealer group about the potential auto loan crisis.

Reports by the anonymous Twitter account CarDealershipGuy revealed an “extremely alarming” trend among auto lenders. The CEO behind the account claimed that many lenders are ignoring red flags associated with loan applicants who are already “underwater” on a prior auto loan.

“This morning I discovered something *extremely* alarming happening in the car market, specifically in auto lending,” CarDealshipGuy, who authors a newsletter for auto market insights, wrote on Twitter, catching many people’s attention.

“I’m now convinced that there is a massive wave of car repossessions coming in 2023.”

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