Auto Credit Crunch Tightens
Borrowers taking on more debt, moving many into delinquent territory.

The percentage of borrowers late on their payments by 60 days or more rose year-over-year from 1.2% to 1.3% in the first quarter.
RDNE Stock
Automotive debtors' burdens are getting heavier.
A study by Transunion found that average monthly debt responsibility rose 20% over the past two years, far outpacing Consumer Price Index growth.
The credit bureau said the average monthly auto loan payment has climbed steadily since the first quarter of 2022, from $1,345 to $1,583 in this year’s first quarter. It said that’s almost double CPI increases over the same time frame.
So it’s not a surprise that delinquencies have gone up during that period. Borrowers late on their payments by 60 days or more rose year-over-year from 1.2% to 1.3%.
The turn of events is curtailing deliveries, despite revived inventory and increased incentives, Transunion said.
“Just as auto inventories began to recover from the worst of the pandemic era supply chain shortages, elevated inflation and higher interest rates that followed have put consumers in a tight financial bind,” said Executive Vice President of Financial Services Jason Laky in a press release. “As a result, many have been taking on additional and larger monthly payments each month to service higher debt levels. This has likely contributed to some consumers holding off on buying or leasing a new auto.”
The debt pressures are particularly affecting below-prime borrowers, the bureau said.
DIG DEEPER: How to Tackle Rates, High Prices and Economic Challenges
More Industry

Kentucky Store Leaves Family
An auto group stretched across three states picked up the Lexington-area Ford fixture as its second store for the brand in the state.
Read More →
U.S. Auto Brands Falling Behind
Asian auto brands are outpacing U.S. brands in stateside new-vehicle sales. Learn more in this week's Dealer Debrief with Lauren!
Read More →
U.S. EV Market Update | Dealer Debrief
The U.S. electric vehicle market is slowly recovering from the loss of the federal EV tax credit last fall. Learn more in this week's Dealer Debrief!
Read More →
Auto Finance Numbers Set Records
Third-quarter data show how consumers are adapting to ongoing affordability challenges facing the new- and-used-vehicle markets.
Read More →
Auto Dealerships Can’t Afford to Ignore the 50+ Consumer
Younger generations may be all the buzz today when it comes to product marketing targets, but their older cohorts command a sizable share of purchasing power.
Read More →
Savings Seekers Boost U.S. Automakers’ Rivals
As consumers here look for ways to curb inflation’s affect on their budgets, brands offering plenty of alternative powertrains are closing in on home-grown OEMs.
Read More →
The Slow Electric Ascent
Second-quarter data show that the electric-vehicle market in the U.S. is inching up, the majority of states seeing a month-over-month increase.
Read More →
Safer Rides & Cyberattacks
Vehicle crash testing is getting a virtual boost, but auto dealerships are facing increased cyberattacks. Learn more in this week's Dealer Debrief!
Read More →
Affordability Angst | Dealer Debrief
August saw little relief for car buyers, whether they were shopping new or used. Take a look at the month's breakdown in this week's Dealer Debrief!
Read More →
Virtual Crash Testing in the Works
A company's platform works alongside physical crash testing to gather insights into occupant response and injury mechanisms, with the idea of helping automakers develop safer vehicles.
Read More →