If you’re making monthly payments on a new car, truck or crossover, you’re not alone. The long, record recovery of the U.S. automotive market has resulted in an all-time high in automotive debt – and is also leading to a rise in delinquency rates.
Between April 1 and June 30, Americans were paying off $1.027 trillion in auto loans, according to Experian Automotive, with a growing share of that due on new vehicle leases. At the same time, the number of buyers who have fallen 30 to 60 days behind on payments rose during the second quarter, Experian reported.
The rise in delinquencies, the increasing dependence upon leasing and the fact that subprime and deep-subprime loans are rising has begun to worry many observers. Nonetheless, “The sky is not falling,” said Melinda Zabritski, the financial service firm’s senior director of automotive finance.