Story perspectives

Rising Auto Loan Delinquencies Signal Distress in U.S. Market

10/20/2025

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Summary

Story summary

The United States auto lending market is distressed as delinquencies and repossessions rise.
About 100 million Americans hold auto loans, with average monthly payments over $750.
The pandemic inflated car prices and left borrowers unable to keep up.
Bankruptcies of Tricolor, a sub-prime auto lender, and First Brands, an auto parts supplier, raise concerns about systemic issues, while experts warn of pressures for lower-income households amid potential Covid-era subsidy cuts.

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Story summary

The United States auto lending market is distressed as delinquencies and repossessions rise.
About 100 million Americans hold auto loans, with average monthly payments over $750.
The pandemic inflated car prices and left borrowers unable to keep up.
Bankruptcies of Tricolor, a sub-prime auto lender, and First Brands, an auto parts supplier, raise concerns about systemic issues, while experts warn of pressures for lower-income households amid potential Covid-era subsidy cuts.