- Over 7M Americans are 90+ days behind on their auto loan payments
- Delinquency rates are nearing 2010 peak levels, which were seen post the 2008/2009 financial crisis
Economic metrics like unemployment and GDP growth show a story that the US economy is strong. Many, however, are struggling to pay their bills.
Over 7M Americans are 90+ days behind on their auto loan payments. This figure, on an absolute basis, is more than 1M more Americans than the end of 2010, when the overall delinquency rates were at their worst.
This number 7M number only tells part of the story because auto loans now are more prevalent than 2010. The overall delinquency rate today is 4.5%, and remains below the 2010 peak levels of 5.3%.
The substantial and growing number of distressed borrowers suggests that not all Americans have benefitted from the strong labor market. Car loans are one of the first bills that are likely to be paid as vehicles are needed daily for transportation to and from work. Falling too far behind on payments can lead to repossession of one’s car.
Economists are growing increasingly concerned that this rate has continued to rise in spite of other strong economic measures.
Article by: Francisco Cortez – Delgado
I graduated from Queen’s University with a Master’s of Political Studies. The intertwined world of politics and economics intrigue me. My favourite stories to cover are the ones that show how a few selected officials can impact nationwide macro-economic policies. I also follow the broader markets and FOREX.