re: I can’t help but think a lot of people driving newer cars with upside down loans

Your thinking is correct. Repossessions have been increasing through both 2022 and 2023 and have continued into 2024. If we are moving into a recessionary period (like I believe we are), look for that to increase.

Other increases that will likely happen as the economy tightens (especially if the consumer credit bubble pops) would be an increase in Unemployment (above 5%), more bankruptcy filings (those are already on the increase) and eventually more home foreclosures (which is still below the pre-COVID level), if the recession lasts long.

If we get into a stagflation scenario (high unemployment, slow growth, but also high inflation), expect those issues to be amplified.