Business, Finance & Tech
More Americans Falling Behind on Car Payments as Auto Loan Delinquencies Surge
One of America’s key economic engines is sputtering — and it’s hitting drivers hard.
A recent report from JD Power shows that nearly 14% of new car buyers last month had credit scores below 650, the highest level of subprime borrowing in nine years. Many of these buyers are now struggling to make their payments, signaling growing financial strain across the country.
According to Fitch Ratings, more than 6% of borrowers with subprime auto loans were at least 60 days overdue on their payments this year — the highest rate ever recorded. The problem has led to a surge in vehicle repossessions, with more than 1.7 million cars repossessed in the past year, the most since 2009, according to Cox Automotive.
Experts say a mix of high interest rates, elevated car prices, and slowing wage growth are making it harder for many Americans to stay current on their auto loans.
The rise in delinquencies comes as other indicators — including credit card debt and mortgage defaults — also show signs of strain, suggesting households may be reaching a financial breaking point. Economists warn that if the trend continues, it could weigh on consumer spending, which drives much of the U.S. economy.
Credit: CNN Newsource
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By: NBC Palm Springs
October 13, 2025
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