Subprime lending in the housing market caused the 2008 economic crisis, leading to foreclosures and lender shutdowns. Former Federal Reserve Chief Ben Bernanke highlighted the impact of rising home prices and lack of credit on consumers at that time. Subprime auto loans are now facing a similar crisis, with Tricolor Holdings filing for Chapter 7 bankruptcy, impacting low-income borrowers. The collapse of Tricolor has made it harder for Americans to access auto loans, impacting the subprime auto loan market and leading to tighter credit standards at major banks. Tighter credit can have a dangerous ripple effect on those who rely on vehicles for work.

Read more at Yahoo Finance: $1 billion Chapter 7 bankruptcy makes auto loans harder