Rise in late auto loan payments signals stress on low-income families
By Summer Ballentine, The Detroit News
The rise in late auto loan payments is a symptom of an increasingly unaffordable vehicle market, experts say. Households with the lowest incomes are suffering the most.
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Auto loan debt is not yet at a crisis point, according to analysts. But economists are closely following late payments as a potential indicator of wider economic stress and trouble for the U.S. auto industry, which has become increasingly reliant on high-price, high-profit pickups and SUVs.
According to a Nov. 24 note from the Federal Reserve Bank, “auto loan debt increased to levels not observed since the Great Financial Crisis (GFC), raising concerns about the health of household balance sheets.”

