Auto loan delinquency in the first quarter of 2023 exceeded the high watermark set in 2009 and 2010, with more than 1.69 percent of loans 60 days past due. According to S&P Global Mobility, that percentage tops the high of 1.46 percent during the Great Recession and a rate of 1.43 percent recorded in the first quarter of 2021.
The increase is primarily due to subprime loans on used vehicles, with independent lenders taking the brunt of the hit. High-interest rates are partly to blame, as is inflation which has led to increased prices in the used car market. Also playing a factor is that car loan debt has recently reached record highs.
