Subprime auto loan delinquencies just hit a record 5.2% for 60+ day late payments. That's more than double what we saw four years ago, and about 1.7 percentage points worse than the 2008 crisis peak.
Even prime borrowers are struggling now. Their delinquency rate is around 0.4%, the highest we've seen since 2011.
Meanwhile, total auto debt in the U.S. climbed another $28 billion last quarter to a record $1.71 trillion.
This isn't just about people with bad credit anymore. When prime borrowers start missing payments and total debt keeps climbing, it tells you something about the broader financial stress households are under.
Car loans might seem small compared to mortgages, but they're often the first domino to fall when people get stretched too thin. Worth watching how this plays out over the next few quarters.
Even prime borrowers are struggling now. Their delinquency rate is around 0.4%, the highest we've seen since 2011.
Meanwhile, total auto debt in the U.S. climbed another $28 billion last quarter to a record $1.71 trillion.
This isn't just about people with bad credit anymore. When prime borrowers start missing payments and total debt keeps climbing, it tells you something about the broader financial stress households are under.
Car loans might seem small compared to mortgages, but they're often the first domino to fall when people get stretched too thin. Worth watching how this plays out over the next few quarters.
