Yes, it is hot, as the pent-up demand looks for a release valve. But. . .

“The quarter ended strong, setting the market up for an incredible spring from a demand perspective, with $1,400 stimulus payments starting to be issued, tax refund season beginning, rising consumer sentiment because of the vaccination progress, and, literally, it is spring which normally causes people to think more about buying vehicles. All those things are coming together right now, and the industry would likely be setting all-time sales records if it were not for tight supplies and elevated prices.”—Jonathan Smoke, chief economist, Cox Automotive

It’s that second thing that can be troubling.

According to Experian, in 2020 U.S. consumer debt was $14.88 trillion, which is a 6% increase compared to 2019 and the highest growth rate in more than a decade.

And of that, auto loan debt was at an all-time high of $1.35 trillion, a 3.8% increase over 2019.

Gen X has the largest auto loan debt balance, at $22,307, followed by the Boomers, at $19,306, which is just ahead of the Millennials, at $19,011.

(Seems like Gen X is big on debt, as it leads all generations in all categories, including credit card debt, student loans and mortgages.)