Journal Article

Auto Loan Delinquency Rates Are Rising, but Mostly among Subprime Borrowers


Abstract: Steady increases in U.S. auto debt over the past seven years have raised concerns over credit quality and delinquency in consumers? repayment. We investigate these concerns and find that the credit quality of auto debt has actually improved throughout the current expansion. Delinquency rates have been rising mostly among subprime borrowers, who represent about a quarter of total outstanding auto debt. However, the potential risks to the financial sector are currently unknown and warrant close monitoring.

Keywords: Auto Debt; Auto Loans; Credit;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Macro Bulletin

Pages: 4