A Fed-induced downturn in the economy could end up bursting the auto bubble. 

"We are seeing delinquencies start to increase," Ford Chief Financial Officer John Lawler told the Deutsche Bank 2022 Global Automotive Conference last month. 

"We're looking for every indication and every data point we can to get a read on where the consumer is, where they're headed given everything that we see out there, the inflationary pressures, the economic issues, et cetera," Lawler said. 

He continued: "So we are seeing some headwinds there a little bit when it comes to delinquencies as maybe a leading indicator."

Edmunds' executive director of insights Jessica Caldwell also noted, "auto loan delinquencies are expected to rise," adding consumers must "understand the risks associated with financing more than what they can afford."