US Auto Delinquencies Have Jumped 50% From 15 Years Ago

Core Insights - Car loans have shifted from being the safest consumer credit products to among the riskiest, with delinquencies rising over 50% due to soaring car prices and increasing interest rates [1][3]. Industry Overview - Delinquencies on car loans, defined as 60 days or more past due, increased by 51.5% from Q1 2010 to Q1 2025, contrasting with other forms of consumer credit like credit cards and personal loans [3]. - As of July 2025, 1.6% of total auto loans were 60 days or more past due, while delinquencies for credit cards and first mortgage loans were below 1% [4]. Market Dynamics - The average price of new cars has risen over 25% since 2019, now exceeding $50,000, with average monthly payments reaching $767 in Q3 [5]. - One in five borrowers is paying more than $1,000 monthly for car loans, with interest rates on new car loans surpassing 9% [5]. Consumer Behavior - Consumers across all income categories are struggling with monthly car payments, with prime and near-prime borrowers missing payments at a faster rate than subprime borrowers [2][6]. - The increase in car ownership costs is affecting all income groups, with higher-income individuals feeling more inclined to purchase expensive vehicles [6][7].