Auto loan delinquencies are up from last year, according to credit rating agencies Experian and TransUnion. The number of car loans delinquent for more than 30 days has risen by 8.1% this year. There is $22.9 billion tied up in 30-day delinquencies, USA Today reports. The number of auto loans more than 60 days late has risen by 12.7%. Sixty-day delinquencies are much more likely to result in repossessions than 30-day delinquencies.
Increased auto loan delinquencies usually make loans harder to get. Banks have less money to lend and are less willing to take a risk on loans in these times. The minimum required credit score for a car loan rises along with interest rates whenever delinquencies become more common.
"People put themselves into vehicles that they can’t keep up with," Phil Reed, senior consumer advice editor for Edmunds.com said. "They really are selling the American dream at the dealership. The car is a very visible demonstration of how well you’re doing in the world … of who you are.”