Fox Business' Jeff Flock reports reports on the latest news based on the automotive industry, as the data reveal that insurance prices have increased year -on -year.
Missed payments for car loans American car owners Over the beginning of this year, it has risen to the highest level.
The percentage of debtors with loans on subprime cars, which are at least 60 days due on their loans, increased to 6.56%in January, which was the highest level since the start of data collection in 1994, according to Fitch.
Share 60 days after maturity car debtors Since August 2024, he remained above 6% after the first year interrupted the threshold for the first time last year. Previously, it approached 6% of the stamp in 1996, 2019 and 2023.
The increase in the number of debtors struggling with automotive loans comes when consumers continue to fight with the impact of inflation pressure that the US economy has experienced in recent years, which has been stressed by Americans' household budgets. Higher interest rates aimed at lowering inflation also caused new loans for loans more expensive.
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In January, the record level increased to the record level, Fitch Ratings reported. (Brandon Bell / Getty Images / Getty Images)
A recent analysis from Federal reserve Bank of New York found that car rental balances have been growing since 2011, and in 2024 they increased by $ 48 billion due to the influx of new car creation.
“Almost all groups of debtors have recorded the rate of delinquency above their predandemic level,” Fed wrote. He noted that debtors with a credit score between 620 and 679 have seen their probability that they will increase from approximately 2% in front of the pandemy to 4% in 2024.
The report found that consumers are “in quite good condition in terms of landscape for household debt” with stable balances and solid performance of mortgage loans – but have noticed car loans problems.
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High car prices and increased interest rates have tense debtors with car loans. (Bridget Bennett / Bloomberg via Getty Images / Getty Images)
“However, for car loans, higher car prices in combination with higher interest rates have led monthly payments up and exerted pressure on consumers across the spectrum of intake and credit score,” Fed explained.
“The episode of rapidly rising car prices had heterogeneous impacts on debtors who moved between used and new cars, as well as loans and rentals. These shifts caused further pressure on lower incomes and Debtors with lower credit who may have had to opt for used cars with higher prices in the last few years, ”the economists wrote.
“Since then, the prices of used cars have rejected from the peak and potentially left some debtors underwater on these vehicles and formed potential challenges for repayment,” they noted.
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The New York Fed In February, she announced that the share of debtors who entered a serious delinquency with payments at least 90 days increased to 3%in the fourth quarter of 2024 among all car loan debtors, which was the highest level since 2010.
