Economics
Auto-Loan Delinquencies Are the Highest Since 2012
- Least creditworthy borrowers falling behind on payments
- Defaults worsen even as lenders shift to high-score consumers
Photographer: Daniel Acker/Bloomberg
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More Americans than ever are at least three months behind on their auto loans, a sign that the U.S. economy may have little growth left in the tank.
The number of loans at least 90 days late exceeded 7 million at the end of last year, the highest total in the two decades the Federal Reserve Bank of New York has kept track. Expressed as a percentage of total debt, the delinquency rate is the highest since 2012, as overall borrowing has also increased.