A growing percentage of Americans are falling behind on their car payments, squeezed by rising auto loan interest rates, stubborn inflation and the end to federal pandemic aid.Recent data from Fitch Ratings found that 6.1% of subprime borrowers were delinquent, or at least 60 days past due, on their auto loan as of September — the highest share recorded by the credit rating agency since it first started tracking the figure in 1994.
Those prices have left a growing number of car owners making payments of more than $1,000 a month. Interest rates on auto loans continue to climb this year, almost in lockstep with the Federal Reserve increasing its benchmark rate in an effort to tame inflation. The interest rates for a new vehicle loan hit 10.48% in September, up from 9.51% in January, according to Cox Automotive. The average financing rate for a used vehicle was 11.4% last month, according to Edmunds.