A record number of Americans are behind on their auto loan repayments.
The rate hit 6.11% in September, per figures from Fitch Ratings reported by Bloomberg.A record number of subprime borrowers are behind on their auto loan payments by 60 days or more, according to figures from Fitch Ratings reported by The rate hit 6.
11% in September – the highest since records began in 1994, and was up from the 5.93% recorded at the start of the year. Analysts predict that auto loan delinquencies will continue to rise into 2024 and peak at about 10% before they start to fall, per The high rates of delinquencies indicate that many lower-earning workers in particularly are struggling amid ongoing high inflation, a rough jobs market, and the High interest rates are also having an impact, with many turning to borrowing to cope. In the second quarter of this financial year, credit card debt surpassed $1 trillion for the first time in the Margaret Rowe, senior director at Fitch, told Bloomberg:"The subprime borrower is getting squeezed. They can often be a first line of where we start to see the negative effects of macroeconomic headwinds.", meaning they have lower credit scores and are deemed less likely to meet their repayments on loans. As a result they usually have to pay considerably higher interest rates.Those that can't meet their payments face having their cars repossessed and often have great difficulty getting to work. In 2022, only 11% of commuters in the US used public transport, according to the Cox Automotive, a leading auto organization, predicts that 1.5 million cars will be repossessed this year – 300,000 more than in 2022. The rising number of delinquencies on auto loans is not putting off some consumers, however. A record number of new car buyers took out
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