It is just not the housing market that grew dependent on wacky lending from the banks. The auto market is similarly hooked. The LAT explains:

Cindy Gerhardt has rolled over so much debt on successive vehicle purchases — five in three years — that she now owes almost $43,000 on two trucks worth no more than $29,000 and, she says, perhaps as little as $22,000.

Faced with car payments that exceed her monthly mortgage, she tried to trade in the pair for a single vehicle. But with so much unpaid principal on the vehicle loans, the only offer she got from the dealer was to trade in one truck on yet another new vehicle — and increase her debt by another $25,000.

“It’s our own fault that we traded in vehicles so many times, but we never thought it would get to this,” said Gerhardt, a secretary who lives with her husband and two children in Clinton, Okla. She recently tried to refinance her mortgage, she said, but was declined because her car payments were too high. “Not one dealer ever said this was a problem. Ever. I never had a dealership say no.”

Yeah, well funny thing is the dealership is trying to sell cars, and hence has zero interest in helping you maintain your credit worthiness. But the “free” money is coming to an end. Dealers and bankers — and consumers — will have to adjust.

Should be a very interesting year or two for the likes of Sonic Automotive and other big, high-volume outfits.