P&A Providers & Administrators
MenuMENU
SearchSEARCH

Auto Borrowers Falling Behind More

Delinquencies rose in Q4 at a greater rate than most other segments.

February 9, 2024
Auto Borrowers Falling Behind More

Millennial and low-income borrowers’ delinquency rates have worsened more than other groups.

IMAGE: Pixabay/Raten Kauf

2 min to read


U.S. Auto loan delinquencies are rising, particularly among young borrowers, and eclipsing prepandemic levels.

On an annualized basis, nearly 8% of auto loans fell into delinquency in the fourth quarter, the Federal Reserve Bank of New York said.

Ad Loading...

Auto loan debt in a state of serious delinquency, which the bank defines as 90 days or more, was at about 2.7%, up from 2.2% a year earlier. It was up by $12 billion from the third quarter and by $55 billion year-over-year to $1.6 trillion.

The bank said auto loan debt has been growing steadily since 2011, rising higher during the pandemic when vehicle prices jumped and loan balances for them “ballooned,” it said. The average origination total had grown by less than 1% per from 2015 through 2020 to about $18,000, it said. In 2021 it jumped 11%, then 10% in 2022, when it ended the year at nearly $24,000.

Prices and loan origination amounts have started to come back down, but as pandemic stimulus payment savings have been spent and loan forbearances ended, delinquency rates have gone up, particularly for auto loans and credit card debt, the bank said.

Millennial and low-income borrowers’ delinquency rates have worsened more than other groups, it said. Loans taken out in 2022 and 2023 are currently performing worse than those opened in prior years, possibly due to higher vehicle prices and because consumers “may have been pressed to borrow more, and at higher interest rates.”

 

Originally posted on Auto Dealer Today

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →