Story perspectives

Car Loan Delinquencies Surge Amid Economic Strain

3/7/2025

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Summary

Story summary

Car payment delinquencies among American consumers hit a 29-year high, with 6.56% of subprime borrowers over 60 days late.
Inflation and rising interest rates are straining lower-income borrowers significantly.
Serious car loan delinquencies reached 3% in Q4, the highest level in 14 years.
Credit card delinquencies increased to 11.35%, marking a 17% rise year over year.
Consumer confidence continues to decline due to economic uncertainty and escalating costs.

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Story summary

Car payment delinquencies among American consumers hit a 29-year high, with 6.56% of subprime borrowers over 60 days late.
Inflation and rising interest rates are straining lower-income borrowers significantly.
Serious car loan delinquencies reached 3% in Q4, the highest level in 14 years.
Credit card delinquencies increased to 11.35%, marking a 17% rise year over year.
Consumer confidence continues to decline due to economic uncertainty and escalating costs.