Story perspectives
Subprime Car Loan Delinquencies Hit Record Highs in U.S.
10/11/2025
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Story summary
- More than 6% of U.S. subprime borrowers are 60 days overdue on car payments, the highest rate on record.
- Rising car prices, stagnant wages, and higher interest rates drive the delinquency rate.
- About 14% of new-car buyers have credit scores below 650, the highest since 2016.
- Repossessions reached 1.73 million in 2024.
- Long-term loans are becoming more common and increase the risk of slow equity buildup or negative equity.
