By the end of 2009 before Congress was anywhere near finished committed trillions of taxpayers money to bailing out banks and subprime loan fraud was in the news every day, I was watching TV ads admonishing car buyers to sign up for “nothing down loans, we finance everybody”.
Your assertion that “when a car loan defaults, there is no crisis” may be true in a balanced economy, however, one of the monthly editorial in Motor Trend magazine (hardly a lefty alarmist publication) earlier this year expressed :“concern” that car sales during the past five years have been higher than they ever have for a longer period of time than they ever have due to risky financing and record percentages of leased vehicles.
The editorial noted that sales of cars were recently trending down while truck and SUV sales were flattening (noting that auto makers give more incentives to buy them because they have higher profit margins than cars)
The concern expressed is that a combined drop in sales, many buyers being underwater with their 5 to 8 year loan durations, increased defaults and boatloads of vehicles coming off lease at the same time would result in repossessing being more trouble than it is worth with limited demand for repossessions. Many banks would take big hits, Dodd-Frank “bail-in” regulations (that Trump is not eliminating) would result in many depositors losing their savings. Not a crisis of the magnitude of the 2007 housing bubble popping, as long as no other big players in the economic card game don’t happen to be cashing in their chips at the same time…the timing of which none of us can predict.