AUTO LOAN DEFAULTS: CRISIS-LEVEL SURGE
• Total auto loan debt in the U.S. has hit a staggering $1.66 trillion, a record high.
• Delinquencies and repossessions are surging, especially among subprime borrowers, whose delinquency rates have surpassed even those seen during the 2008 financial crisis.
• Prime borrowers aren’t immune either—delinquency rates among them have ticked up, signaling broader economic stress.
• 60+ day delinquency rates reached 1.38% in Q1 2025, exceeding the 2009 peak of 1.33%.
Dealer Floorplan Defaults: A Growing Threat
• While specific floorplan default data is less publicized, reports suggest dealers are struggling to maintain inventory financing due to high vehicle costs and slowing sales.
• Predatory lending practices, inflated pricing, and reduced federal oversight have worsened the situation, leaving both buyers and sellers exposed.
Economic Red Flags
• Consumer advocates warn this could be a canary in the coal mine for broader economic instability.
• The crisis is compounded by inflation, high interest rates, and tariffs, making car ownership increasingly unaffordable.
If you’re negotiating a car lease or evaluating resale opportunities, this environment could offer leverage—but also demands caution.
