Data as a report by Fox Business Jeff Flok on the latest news that emerged from the auto industry suggests that insurance prices have increased year to year.
Payments paid on auto loan American car owner Earlier this year reached the highest level in three decades.
According to Fitch Ratings, the percentage of borrowers with subprime car loans, which are at least 60 days last in January, increased by 6.56% in January, the highest level since the data collection started in 1994.
Part of the previous sub -availability of 60 days Auto borrower For the first time earlier last year, 6% has been above 6% since August 2024 after breaking the threshold. It was previously approached 6% marks in 1996, 2019 and 2023.
The number of borrowers struggling with auto debt occurs when consumers have continued to struggle with the impact of inflation experienced in recent years, which has stressed the domestic budgets of Americans. High interest rates aimed at bringing inflation down also made new auto loans more expensive to borrowers.
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Subprime Auto Loan Delunction reached a record level in January, Fitch Rating reported. (Brandon Bell / Getty Image / Getty Image)
A recent analysis by federal Reserve Bank of New York found that the auto loan balance has increased continuously since 2011 and increased by $ 48 billion in 2024 due to the arrival of new origin auto loans.
NY Fed wrote, “Almost all borrower groups have seen an increase in delyncancy rate beyond their east levels.” Noted that borrowers with credit scores between 620 and 679 saw their possibility due to an increase in a quarter from about 2% to a quarter before 4% from the epidemic in 2024.
The report found that the consumers are in very good size in terms of “domestic debt scenario” with stable balance and concrete performance in hostage loans – but paid attention to issues with auto debt.
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High car prices and high interest rates have made borrowers tense with auto loans. (Bridget Bennett / Bloomberg Getty Image / Getty Image)
“However, for auto loans, high car prices combined with high interest rates have extended monthly payment upwards and pressurized consumers in income and credit score spectrum,” NY Fed said.
“Rapidly rising car prices episodes have had an odd effect on borrowers who have been used and transferred between new cars as well as loans and leases. These changes have put additional pressure on low income and put additional pressure on low income Lower-credit-score borrower Which was to choose the option of high -priced cars over the years, “the economists wrote.
He said, “The prices of the car used have declined from the peak, possibly some borrowers on those vehicles under the water and create potential repayment challenges,” he said.
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New York Fed In February, it was reported that among all the borrowers of auto loans, the share of borrowers who entered into a severe crime with at least 90 days, increased by 3% to 3% in the fourth quarter of 2024, which was the highest level since 2010.
