Car Loan Delinquencies Up
Report shows those 60 days or more overdue reached 10-year high.
Report shows those 60 days or more overdue reached 10-year high.
IMAGE: Getty Images/i_frontier
A recent TransUnion report shows auto loan delinquencies are on the upswing as inflation pressures borrowers' finances.
TransUnion said it found that the number of delinquencies has risen above pandemic-level lows and is largely driven by a backlog of likely delinquencies that were put off by government relief related to the pandemic.
The rising rate of delinquencies was also precipitated by falling originations from 2020 to 2022 due to decreasing demand and limited vehicle inventory, plus an uptick in repossessions and payoffs in 2021 and 2022.
Loans at least 60 days overdue reached 1.65% in the quarter, the highest rate in more than a decade.
READ MORE: More Auto Borrrowers Struggling to Make Auto Loan Payments
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