Americans are missing their car payments at the highest rate in decades, according to Fitch Ratings data.
Why it matters: Car costs, including loans and insurance, have soared in an economy where consumers are showing mounting signs of stress.
By the numbers: 6.6% of of subprime auto borrowers were at least 60 days past due on their loans as of January 2025.
- This is the highest level since the agency began collecting data. The fall and winter of 2024 saw the next highest subprime delinquency rates.
- Prime borrower scores are faring better than subprime, with 0.39% 60-day delinquencies in January 2025, up from 0.35% in January 2024.
Threat level: “Subprime auto loans face a deteriorating outlook for 2025,” a Fitch report said.
Driving the news: Multiple factors have increased the cost of car ownership, per Cox Automotive executive analyst Erin Keating, Axios’ Joann Muller reports.
- Vehicle prices are higher, averaging just under $50,000, and high loan rates (over 9% for new cars and almost 14% on used cars) are translating to steep monthly payments.
- Plus, car insurance rates are up 19% year over year, while repair and maintenance costs have risen 33% since 2020.
https://www.axios.com/2025/03/07/car-loan-payment-delinquencies-record-high
- 6.6 percent of subprime auto borrowers were over 60 days past due in Jan.
- It’s the highest level since Fitch Ratings began tracking data in 1994
- President Trump’s tariffs are likely to drive up car prices even further
https://thehill.com/business/5183840-late-car-payments-record-high/