Car sales in America have hit the brakes recently after a period of record sales.

Much of the growth in auto sales has been stimulated by expanding car loan volumes which now sit at over $1.1 trillion in car loan debt outstanding, 40% above 2008 levels.

As auto lending volumes have expanded, delinquency and loss rates on car loans have also begun to increase, particularly in the high risk, sub-prime sector.

With rising interest rates and tightening credit standards set to impact the US, will the car finance industry face similar pressures here in Australia?