Auto Borrowers Falling Behind More
Delinquencies rose in Q4 at a greater rate than most other segments.

Millennial and low-income borrowers’ delinquency rates have worsened more than other groups.
IMAGE: Pixabay/Raten Kauf
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.
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 F&I

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →