RPT — BREAKINGVIEWS — The $1.7 trln auto loan market heads for a crash

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By Stephen Gandel NEW YORK, Oct 13 (Reuters Breakingviews) — The US commute is becoming an antique roadshow. Squeezed by high vehicle prices and borrowing costs, drivers are buying older cars with loans that last as long as eight years. The tactic lowers monthly payments, but leaves households stuck in debt on autos that are both costlier to maintain and harder to resell. The market looks to be heading for a breakdown — one that could affect one of Wall Street's largest securitization markets. As with every other economic trend, these symptoms accelerated during the pandemic. Supply shortages and $5 trillion in economic stimulus sent car prices soaring, hitting $50,089 in September, up from $38,550 in February 2020, according to data from Kelley Blue Book. Detroit-based giants General Motors and Ford Motor recorded billions of dollars of benefit to their bottom lines from charging more for new Cadillacs and F-150 trucks. Used cars prices are off their peak, but are still nearly 30% higher than they were in December 2019, according to the US Bureau of Labor Statistics. Car buyers have simply taken