Rising Car Prices and Interest Rates Drive Surge in Auto Loan Delinquencies
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Auto loan delinquency rates are at their highest since 1994, with 6.1% of subprime borrowers at least 60 days past due.
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Higher vehicle prices, borrowing costs, and inflation are making it harder for people to afford car payments.
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Generation Z and millennials have seen some of the biggest jumps in auto loan delinquency rates.
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Interest rates for used cars average 13.5% for those with fair credit, and can be as high as 21% for those with poor credit.
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The computer chip shortage has contributed to increased car prices, which may persist into 2024.