By Steven Symes 
If you feel like it’s hard to keep up with financial obligations like your car payment lately, you’re not alone. Data shows more people are behind on payments for their vehicle than at any time in the last 30 years, signaling the auto market might be slowing down.
After disappearing 66 years ago, a missing family’s station wagon has been found.
Data from Fitch Ratings, an American credit rating agency, shows 6.56 percent of subprime borrowers for car loans are at least 60 days late on making payments as January 2025. That is the highest Fitch Ratings has ever measured since it started gathering auto loan data starting in 1994.
In other words, it’s the highest rate of delinquency on car loans in at least 30 years, but it could be the worst rate for an even longer term. That’s not a positive sign for the auto industry and the economy as a whole.
A few factors are likely fueling the rise in subprime auto loan delinquencies. One is the overall inflation everyone has been impacted by, making everything from groceries to utilities and other necessities.
Another factor likely affecting auto loan delinquencies is the soaring cost of new cars. According to Cox Automotive, prices hit a peak in December 2022 with an average of $49,929. But they’re down only slightly, with January 2025 prices averaging $48,641.
For example: a 2025 Honda Civic starts at $25,345 when you could get a 2019 Civic for $19,550.
While high car prices are in part thanks to inflationary forces, government regulations and other factors have pumped things up further, something that was happening long before inflation reared its ugly head. That’s why a 2014 Civic started at $15,455.
Many fear the much talked about trade war brewing will explode the cost of new cars further, along with the price of replacement parts for used vehicles. While many are already priced out of the market, further price increases will have a very negative affect on sales overall, especially for more premium models.
Image via Ford