Rising Delinquencies: Americans Struggle with Auto Loan Payments

A record number of Americans are falling behind on their car payments, with the percentage of auto borrowers at least 60 days late on their bills reaching the highest level in nearly three decades. High auto prices, inflation, and rising interest rates have strained household budgets, leading to increased loan delinquencies. While defaults have not yet seen a significant increase, repossessions are expected to climb in the coming months. The average cost of a new car is around $48,000, and the average new auto loan rate has jumped to 7.4% in September. Rising interest rates and high car prices have pushed monthly payments above $1,000 for many Americans, raising concerns for the auto industry.