If you can't afford the car without others paying for it, you probably shouldn't sign for the loan. Hell, you shouldn't be able to get one in the first place.
If there's a downturn and a loaned car can't be sold privately, then the car is simply repossessed and auctioned off. These things are all contractual, and in a properly setup system the company shouldn't make any losses over all their loans, regardless of a few pettering out.
If you buy a car and rent it, that's suspiciously like simply running a business and many businesses run using loans both short term and long.
> What happens if the price of oil goes way down, causing the
> value of Teslas to drop dramatically?
what does that even mean?!? It implies that there is not a lack of oil but the oil age will be coming to an end anyway. I think what he's actually trying to say is "we're running out of oil, but I can't say that".
I think he also said that "there'll always be a trickle of oil being produced at $1000/barrel" but maybe that was at another time.
It's precisely analogous: the age of oil will be "over" long before we run out of oil. That's how resource economics work.
I agree that the the price of oil is more likely to increase. It's common sense: The oil companies prefer to develop the cheapest (simplest, most accessible) fields first, so every time a field empties they replace its output with oil from a more expensive field, or not if the new field seems too expensive at the current price level.
But that doesn't that indebted car owners are safe. Oil producers can't cut production all that much (geology doesn't work that way) so the price can certainly drop in the short term. A few years later it'll have increased again, but in the meantime the bank might have impounded the car.
I can think of bigger risks. But anyway, that's the connection, tenuous as it may be.
When everybody agrees, someone is not thinking. So it was in 2014. And with houses in 2008. And .com stock in 1999.
There are any number of low-but-not-zero-probability events that can cause the price of oil to start rising very quickly. Including the collapse of the House of Saud.