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 »