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U.S. Car Loan Delinquencies Hit 8-Year High

U.S. Car Loan Delinquencies Hit 8-Year High

 Source:Reuters | Publication date: Feb 16, 2017 | Author(s):Jonathan Spicer and Richard Leong

According to data released by the Federal Reserve Bank of New York, the number of Americans who missed car loan payments in the final quarter of 2016 approached levels of the last financial crisis.

Car loan delinquencies of 30 days or more topped $23.27 billion, up from $22.98 billion in the third quarter and the most since a peak of $23.46 billion was reached in the third quarter of 2008.

Loans with outstanding payments of 90 days or more rose to $8.24 billion in the fourth quarter, its highest level since the third quarter of 2016.

The survey indicates that the increase in late loan payments coincides with drivers taking on more debt to purchase the newest generation of vehicles, with the number of loans reaching their highest level since the data started being collected.

As of the end of 2016, U.S. automotive-related debt reached $1.16 trillion, up $93 billion from 2015.

Read full article at: Reuters »

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  1. ScarredKnight
    This can't be surprising news.............

    Cort, www.oldcarsstronghearts.com

    pig&cowValves.paceMaker * 1979 CC to 2003 MGM + 81mc

    "Promises mean everything" | Everclear | 'Wonderful'
    All unfortunate signs of a mature market without a ton of natural growth left. The North American market is essentially a replacement market. It's very competitive and the only way to make money is to upsell -- hence the longer loan terms. No good if people can't cover the longer, though.

    That's why it imperative the automakers do well in expanding markets like China where there is the opportunity to grow volume profitably.
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