Auto Loan Delinquencies Keep Climbing

Auto loan delinquencies are climbing to their highest level since the Great Recession, signaling growing strain on American households. New data from Fitch Ratings shows subprime borrowers at least 60 days past due reached 6.65% in October 2025—the highest rate since tracking began in 1994 and above the peaks of 2008. Early-stage delinquencies are rising across all credit tiers, suggesting even stable earners are feeling the pressure.

Several forces are driving the surge. New vehicle prices now average more than $50,000, while used cars hover around $28,000. To manage these costs, many buyers rely on 72- and 84-month loans, often carrying negative equity from previous vehicles. High interest rates—averaging above 9% for new cars—are pushing monthly payments beyond what many budgets can absorb. With wages lagging behind rising living costs, auto loans are becoming harder to maintain.

Repossession activity is rising sharply, with analysts projecting up to 3 million vehicles repossessed by year’s end. As lenders tighten standards and consumers reassess priorities, surging delinquencies may foreshadow weakening confidence and broader economic slowing. Source: https://vocal.media