Car Payment Delinquencies Reach Record Highs Across the U.S.

Car Payment Struggles Hit Working Families Hardest

Car payments are becoming impossible to keep up with. More people are falling behind. In January 2025, 6.56% of subprime auto borrowers were at least 60 days late. That’s the worst it has been since 1994. Families are feeling the pressure. Many cannot afford their monthly payments. The situation keeps getting worse.

The price of a new car has jumped over $10,000 since 2020. Interest rates are through the roof. Wages are not keeping up. The Federal Reserve reports an alarming rise in serious delinquencies. More people are facing repossession. Car loan debt is now a national crisis.

Car Payment Defaults Could Increase With Trump’s Tariffs

President Trump is pushing for new tariffs. If approved, car prices could rise by another $12,000. That would make car ownership even harder. Automakers will see fewer buyers. Lenders will tighten restrictions. Loan approvals will get tougher.

For many families, cars are not a luxury. They need them to get to work, pick up kids, and buy groceries. If prices keep climbing, more people will fall behind. Many will lose their vehicles. The economy will take a bigger hit.

Car Payment Troubles Worsen for Subprime Borrowers

Not everyone is struggling the same way. Prime borrowers are managing better. Only 0.39% of them have missed payments. But for subprime borrowers, the story is different. They took out loans when interest rates were lower. Now, their payments have skyrocketed. Refinancing is not an option. They are stuck.

Lenders are responding by tightening credit. They are making it harder to get approved. That means even people with jobs are getting turned down. More Americans are finding themselves without options.

Car Payment Delinquencies Reflect a Growing Economic Crisis

This is not just about car loans. It’s about how expensive life has become. Rent keeps increasing. Groceries cost more than ever. Wages are not rising fast enough.

People who always paid on time are now missing payments. Repossession is becoming more common. Families are losing their only means of transportation. The government is not stepping in to help.

Car Payment Crisis Will Continue Without Real Solutions

The situation is getting worse. Interest rates are still high. Car prices are not dropping. More people will lose their cars. More families will be left without transportation.

America needs real solutions. Working families need relief. No one should have to choose between keeping their car and paying rent. Something must change before it’s too late.