Canary In The Showrooms: Auto-Loan Delinquencies Are the Highest Since 2012

The percent of auto loans in serious default has risen to the highest level in almost seven years, as consumers with weak credit struggled to make payments despite a strong U.S. economy and tight labor market. Auto loans delinquent more than 90 days rose to 4.47 percent of the total in the fourth quarter, the highest since the period ended in March 2012, according to Federal Reserve Bank of New York data. The flow of consumers with the weakest credit who fell seriously behind paying off their car was the highest since the second quarter of 2010.