{"id":614,"date":"2023-06-01T20:50:20","date_gmt":"2023-06-01T20:50:20","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=614"},"modified":"2025-05-05T10:24:47","modified_gmt":"2025-05-05T10:24:47","slug":"number-of-young-americans-late-on-car-loan-payments-hits-highest-level-in-14-years","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2023\/06\/01\/number-of-young-americans-late-on-car-loan-payments-hits-highest-level-in-14-years\/","title":{"rendered":"Number of Young Americans Late on Car Loan Payments Hits 14 Year High"},"content":{"rendered":"\n
\"Car
In the second quarter of 2023, the number of individuals under the age of 30 with car loans who were at least 90 days overdue on their monthly payments \u2013 known as \u201cserious delinquency\u201d <\/em>\u2013 had reached 4.6 percent. File photo: SB Arts Media, Shutter Stock, licensed.<\/figcaption><\/figure>\n\n\n\n

WEST PALM BEACH, FL – The number of young Americans who are delinquent on their car loan payments have reached the highest level in the 14 years since the tail-end of the Great Recession, according to a new report<\/a> put out by the New York Fed. <\/p>\n\n\n\n

In the second quarter of 2023, the number of individuals under the age of 30 with car loans who were at least 90 days overdue on their monthly payments \u2013 known as \u201cserious delinquency\u201d <\/em>\u2013 had reached 4.6 percent. This number represents a significant increase year-over-year and is the highest percentage on record since 2009, when loan delinquency in that age group reached 4.7 percent. <\/p>\n\n\n\n

The number of new automotive loans and leases across all ages last quarter was $162 billion, which is a decrease from the same period of time in 2022 but nonetheless an increase when compared to before the COVID-19 pandemic. The percentage of all borrowers \u2013 regardless of age \u2013 who were seriously delinquent on their car loan payments in the second quarter was 2.3 percent. <\/p>\n\n\n\n

However, younger Americans are the group that appears to be having the most issues with delinquency, with experts reasoning that this is due to individuals aged 30 and under being \u201cmore vulnerable\u201d to ongoing macroeconomic trends.  <\/p>\n\n\n\n

One of these trends involves interest rate hikes put forth by the Federal Reserve in order to combat the record-high inflation currently gripping the nation. These rate hikes directly translate to higher interest rates on auto loans, with Americans currently paying approximately $50 to $60 more than usual each month, according to Bankrate.com\u2019s Chief Financial Analyst Greg McBride. <\/p>\n\n\n\n

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The payments are absolute budget busters,\u201d he said. \u201cThe average car payment for new car buyers was $800 a month last year, [and] about one in seven buyers has a payment of at least $1,000 a month. There’s no wiggle room there.\u201d <\/em><\/p>\n<\/blockquote>\n\n\n\n

If the Fed\u2019s efforts to curb inflation are unsuccessful and the nation enters a recession, McBride said things are only going to get worse. <\/p>\n\n\n\n

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If the economy weakens and goes into a recession, we’re going to see a level of auto loan delinquencies that hasn\u2019t been seen in a very long time, if ever,\u201d he said. <\/em><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

WEST PALM BEACH, FL – The number of young Americans who are delinquent on their car loan payments have reached the highest level in the 14 years since the tail-end of the Great Recession, according to a new report put out by the New York Fed.  In the second quarter of 2023, the number of […]<\/p>\n","protected":false},"author":4,"featured_media":615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-614","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n