More Americans are falling behind on their car payments, a trend that points to growing financial strain among lower-income households. Data from Fitch Ratings shows that in January,.
More Americans are falling behind on their car payments, a trend that points to growing financial strain among lower-income households. Data from Fitch Ratings shows that in January, nearly 6.5% of subprime auto loans were at least 60 days overdue, and the figure has remained close to that record high all year. Repossessions have surged and more people are trading in cars worth less than they owe. Major auto lenders, including CarMax and Ally Financial, have cautioned investors about weakening loan performance. While indicators like the rising stock market and continued consumer spending suggest the economy is resilient, the spike in auto loan delinquencies signals that financial stress is mounting among low- and middle-income families, the New York Times reports.
