A Record Number Of Americans Are Behind On Their Auto Loans

A record number of Americans are now behind on their auto loans, with delinquencies reaching their highest levels in decades as of late 2025. The problem is especially acute among subprime borrowers, where the share of loans at least 60 days overdue hit 6.65% in October—worse than any rate seen since the 1990s. Overall, 5.02% of U.S. auto loans were 90 or more days delinquent in Q3 2025, a significant increase both year-over-year and relative to historical averages.​

Key Drivers

• Rising Car Prices: The average new vehicle price recently topped $50,000, making car ownership more expensive for many Americans.​

• Higher Interest Rates: New car loan rates now average around 9%, while subprime consumers may see rates up to 20%, dramatically increasing monthly payments and loan burden.​

• General Economic Strain: More Americans are experiencing financial stress, translating to sharply higher rates of default, delinquency, and, increasingly, repossessions.​

Historical Context and Trends

• The current 6.65% delinquency rate for subprime borrowers is worse than what was observed during previous recessions, such as the Great Recession and the COVID-19 crisis.​

• Auto loan delinquencies are now up to 50% higher than they were 15 years ago, a trend that has accelerated in recent years as loan amounts and payment obligations surged.​

• Total auto loan debt reached $1.655 trillion in Q2 2025, reflecting broader consumer debt challenges.​

Wider Implications

• The surge in missed payments is both a symptom and a risk for the U.S. economy. Rising defaults and loan stress affect not only car owners but also lenders and the broader financial system.​

• Elevated auto loan delinquencies and defaults could result in more vehicle repossessions and strained credit markets, particularly for the most vulnerable consumers.​

Overall, the current spike in auto loan delinquencies reflects deepening economic fragility for millions of Americans, driven by high vehicle costs, expensive credit, and growing financial pressure across households.