This week, Andy Wang, Managing Partner at Runnymede Capital Management and host of the Inspired Money podcast, spoke with Spectrum News 1 reporter Chace Beech at the LA Auto Show. He joined the segment to discuss the growing financial pressures facing car buyers today and to explain why rising auto-loan delinquencies and affordability concerns are emerging as key indicators of consumer stress.
Spectrum News 1 covered the financial pressures shaping today’s car market in a segment from the LA Auto Show, where reporter Chace Beech spoke with Andy Wang, Managing Partner at Runnymede Capital Management. The story focused on how rising sticker prices, higher interest rates, and increasing repair costs are forcing buyers to rethink their options. With subprime auto-loan delinquencies reaching 6.7%, the highest level since the 1990s, Wang described the trend as “a serious warning light in the consumer economy.”
He explained that when borrowers fall behind on car payments, it often signals deeper financial strain. “A car loan is often a necessity to get to work,” he said, “so if someone is falling behind, it’s a sign that their entire household budget is under strain.” Wang emphasized that these delinquency rates aren’t necessarily predicting a recession, but they do reveal the mounting pressure on lower and middle income Americans as everyday expenses continue to rise.
The story also highlighted that many shoppers are holding onto older cars and weighing difficult trade-offs, underscoring the complicated landscape facing consumers in today’s economy.
