More Americans are falling behind on car payments these days than before the high inflation, cooling job market, and other challenges other challenges that are keeping millions awake at night. Unfortunately, this leads to a growing number of auto repossessions, and the trend is expected to continue.
Per Bloomberg, the number of subprime auto borrowers in December who were at least 60 days late on their payments increased by 5.67%, up from a seven-year low of 2.58% in April 2021.
For a greater perspective, the rate was 5.04% in January 2009 when the Great Recession was at its peak. High interest rates are simply making it more and more challenging to make those monthly payments.
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