JPMorgan CEO issues auto loan warning

As it emerged in a research report from Experian yesterday that Americans are borrowing more to buy a new car, and then taking longer to pay it back, JPMorgan CEO, Jamie Dimon warned that “auto is clearly a little stretched, in my opinion…someone is going to get hurt”. The report also states that more sub-prime borrowers are taking out auto loans as the total amount of auto loans passed the $1tn mark for the first time, with the average loan hitting an all-time high of $30,000, comprising monthly payments of around $500, which is also a record.

Jamie Dimon is sounding the alarm on auto loans.

"Auto is clearly a little stretched, in my opinion," the JPMorgan Chase CEO said Thursday morning, speaking at the AllianceBernstein Strategic Decisions Conference in New York. "Someone is going to get hurt. ... We don't do much of that."

But other lenders have.

The average size of new auto loans is rising, as is the average payment size, according to research from Experian released Thursday morning.