It’ll come as a surprise to no one, but Gen Z and Millennial car buyers are falling really far behind on their car payments. In fact, it’s happening at rates we haven’t seen since the financial crisis of 2008 and 2009, according to Automotive News. The problem is only going to get worse, too. Remember, young folks aren’t paying back their student loans right now, but that’s all set to change soon.
On average, AutoNews reports that 3.58 percent of 18 to 29-year-olds and 2.62 percent of 30- to 39-year-olds have been late on their auto loans by at least 90 days. For some context, just 2.13 percent of all borrowers are late. Keep in mind, these numbers are overall. In the first quarter of 2023, 4.55 percent of 18- to 29-year-olds were at least 90 days late. 3.66 percent of 30- to 39-year-olds were equally late. We haven’t seen numbers like these since The Great Recession.
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