Overview
- Fitch reports 6.43% of subprime auto loans are 60+ days past due, the second‑highest rate since the early 1990s and just below January’s peak.
- Industry trackers expect more than 3 million vehicle repossessions in 2025, likely the most since the Great Recession, with repossession firms reporting heavy activity.
- Cox Automotive data show subprime default rates hovering around 11% in September as many borrowers owe more than their cars are worth and exhaust other bill‑paying options first.
- Overall auto delinquencies reached 3.8% in June 2024, the highest since 2010, as average new‑car prices top $50,000, loan rates run near 7% for new and ~11% for used, and repair and insurance costs climb.
- VantageScore finds delinquencies rising across income tiers with faster absolute increases among prime borrowers, though prime delinquency remains below 0.5% and analysts see limited systemic risk given auto debt’s small share of household balances.