High Interest Rates Squeeze Subprime Auto Borrowers With Record Delinquencies
-
A record 6.11% of subprime auto borrowers were 60+ days behind on payments in September, per Fitch Ratings data reported by Bloomberg.
-
Vehicle repossession rates are also rising, leaving many without transportation to work.
-
High interest rates and inflation are squeezing lower-income subprime borrowers in particular.
-
Credit card debt has also surpassed $1 trillion for the first time, indicating wider struggles.
-
Despite rising delinquencies, some buyers are still taking out large auto loans, with record numbers borrowing $1,000+ per month.