Auto Consumers Increasingly Late on Car Payments

The Wall Street Journal reports that despite low unemployment at the end of 2022, 9.3% of auto loans extended to low credit score borrowers were delinquent (30 days late or more) according to Moody’s Analytics. This is the highest rate since 2010, according to the rating agency. This can be partially attributed to the loosening of lending standards in 2021 that many banks had reported. According to Cox Automotive, the number of vehicle repossessions rose 11% in 2022 but was still below pre-pandemic levels.

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