https://finance.yahoo.com/news/tip-nega ... 00474.htmlWith a record 16% of American consumers paying at least $1,000 a month for their cars, it's no surprise that drivers are starting to fall behind on their bills.
The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.
The percentage of subprime auto borrowers who were at least 60 days late on their bills hit 5.67% in December, trumping 5.04% in January 2009 at the peak of the Great Recession, according to the credit rating agency Fitch Ratings.
Ally Financial (NYSE:ALLY), one of the largest providers of car financing in the U.S., said its percentage of car loans that were more than 60 days overdue rose to 0.89% in Q4 2022, up from 0.48% a year earlier.
Vehicle repossessions are also reportedly on the rise after a sharp drop at the start of the pandemic when Americans were boosted by stimulus checks and lenders were more willing to turn a blind eye to late payments.
“These repossessions are occurring on people who could afford that $500 or $600 a month payment two years ago, but now everything else in their life is more expensive,” said Ivan Drury, director of insights at Edmunds, in the January report from Edmunds.
A Turning; Are tougher times in Store
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A Turning; Are tougher times in Store
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The end is always near; its the beginning and how you live each moment that counts the most
The end is always near; its the beginning and how you live each moment that counts the most