The number of borrowers in the US who are seriously behind on their car loans rose to the highest level on record in 2018, raising concern about the deterioration of consumer credit despite strength in the broader economy.
More than 7m Americans are now 90 days behind and considered “seriously delinquent” on car loan payments, over 1m higher than the previous peak in 2010, according to a report from the Federal Reserve Bank of New York.
The rising number of borrowers falling behind on loan payments has been driven by those with the lowest credit scores. Close to 8.2 per cent of so-called subprime borrowers — those with credit scores below 620 — became seriously delinquent last year, the highest level since 2010.