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‘the share of subprime auto loans that were 60 days or more past due reached a high of nearly 6.5 percent in january and has lingered near that level, according to fitch ratings Car loans have gone from the safest consumer credit products to among the riskiest over the last 15 years as delinquencies rose more than 50%, driven by soaring car prices and rising interest. Repossessions have swelled, more drivers are trading in vehicles that are worth less than they owe and lenders such as carmax and ally financial have warned investors about auto loan performance
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The reality is that, increasingly, americans cannot afford their cars anymore Car costs, including loans and insurance, have soared in an economy where consumers are showing mounting signs of stress. The average price of a new car in the us has surged by 35pc since 2019 and surpassed $50,000 this year.
