US auto loan debt market suffers its biggest monthly loss since March 2020


Auto loan delinquencies and repossessions are climbing toward pre-Great Recession levels, and repossessions are up more than 40% since 2022, according to a Consumer Federation of America report.
Mid-tier borrowers are defaulting at nearly double their pre-pandemic levels, forecasting larger losses ahead for subprime portfolios and suggesting broader risk exposure.
Subprime lenders face rising pressures at the funding, regulation, operations, and securitization market fronts — which narrow avenues of capital and raise reputational concerns.
Severe auto loan delinquencies are climbing back toward financial-crisis peaks, with outstanding balances surpassing $1.66 trillion and repossessions climbing more than 40% since 2022, according to a new Consumer Federation of America report.

The report, Driven to Default, raises red flags for subprime lenders already facing shrinking spreads and tougher oversight.

Severe delinquencies (90 or more days late) are headed back to pre-financial-crisis peaks, an indicator of repayment stress across auto loan portfolios. Repossessions are at their highest since 2009, which only serves to highlight the manner in which payment defaults are becoming asset losses.

The strain is now reaching mid-tier borrowers. Borrowers in the 620–679 range — once considered “above average” — are defaulting at nearly double their pre-pandemic level.

Their slide signals even greater trouble ahead for subprime accounts, a warning that lenders could soon face heavier losses, tighter margins, and tougher questions from investors and regulators.

https://www.badcredit.org/news/auto-loan-defaults-near-crisis-highs-as-debt-hits-1-66-trillion/

https://www.carscoops.com/2025/09/auto-loan-delinquencies-are-off-the-dial-and-even-prime-borrowers-are-struggling/

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