Americans are missing their car payments at the highest rate in more than 30 years, data shows.
According to Fitch Ratings, 6.56 percent of subprime auto borrowers were are at least 60 days past due on their loans in January, the most since the agency began collecting the data in 1994.
The findings highlight the financial strain many Americans are feeling, as rising costs and high interest rates make it harder to keep up with their bills.
A recent report from the Federal Reserve Bank of New York also found more borrowers falling behind on their car payments. In the fourth quarter of 2024, the share of auto loans among all borrowers that transitioned into serious delinquency — 90 days or more past due — rose to 3 percent, the highest level since 2010.
“Higher car prices combined with higher interest rates have driven monthly payments upward and have put pressure on consumers across the income and credit score spectrum,” researchers at the New York Fed wrote.
The cost of buying a new car has risen more than $10,000 since the pandemic, from roughly $38,000 in January 2020 to more than $48,500 in January 2025, according to Cox Automotive data.
Elevated interest rates have added to the pain, pushing up the cost of financing in recent years.
The average monthly payment for a new car loan was $755 in January — down from the $795 peak in December 2022 but well above the $566 average in 2019, per Cox Automotive.
President Trump’s tariffs could drive up car prices even further, by as much as $12,000, according to one analysis.
That concern was so widely held that Trump granted a one-month exemption on his new tariffs specifically for auto imports from Mexico and Canada.
Mexico and Canada are the top U.S. trading partners for both motor vehicles and parts, meaning Trump’s 25 percent tariffs could hurt consumers and automakers alike.
According to Fitch, those with higher credit scores, so-called “prime” borrowers, are faring a bit better when it comes to their car payments. In January, 0.39 percent of prime borrowers were at least 60 days past due on their car loans, up from 0.35 percent a year ago.
According to Bloomberg, Fitch defines subprime auto borrowers as those with credit scores of 640 or less.
