Consumers Skip More High-Rate Auto Payments Than During Crisis
- Delinquency rate reaches highest since 1996 at 5.8 percent
- Number of auto loans and leases to subprime borrowers falls
Photographer: Patrick T. Fallon/Bloomberg
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Borrowers in the U.S. are defaulting on subprime auto loans at a higher rate than during the financial crisis, according to Fitch Ratings.
Lenders are responding by pulling back on financing to applicants with shaky credit histories and requiring higher standards for loans that they bundle and sell on to investors.