Debtor Nation Falls BehindDavid Welch
Want another reason car buyers aren’t racing to dealerships? Many buyers are having trouble paying the balance on the loans they already have. More and more borrowers are falling behind, according to Experian Automotive, which tracks auto loan performance. At the end of the second quarter, the number of borrowers who fell to 30 days past due rose 9% to 2.48% of all outstanding loans. That’s $20 billion worth of borrowing. The number of borrowers who fell 60 to 79 days behind rose 12% to .78% of all loans. That’s about $6 billion worth of loans that are at least 60 days late. So those buyers are out of the car market along with a few million others who owe more on the car than they could get on the trade in.
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