US Subprime Auto Loan Delinquencies Levels At 20 Year Highs – ValueWalk Premium
US Subprime Auto Loan Delinquencies

US Subprime Auto Loan Delinquencies Levels At 20 Year Highs

US Subprime Auto Loan Delinquencies Levels At 20 Year Highs @creditmacro 

A month back whilst going through some US banking sector charts I came across the below unassuming, un-highlighted chart..


US subprime auto loan 60-day delinquencies levels
So US subprime auto loan 60-day delinquencies levels are at 20 year highs whilst we are in a "full employment" and a low rate environment...

Worth looking in to and putting some thoughts together.. now I am by no means an expert so any thoughts feel free to put at bottom or ping me a message @creditmacro .. so here goes...

In these type of situations I always find charts or bullet pointed stats say a million words:

  •  ~86% of new vehicles have financing on them
  • 43% of non-prime (that's the new name for sub-prime) are millennials
  • average payment time has reached new highs- people are having to extent the contracts out longer to be able to afford the payments
  • whats more..longer loans, those with terms lasting 73 to 84 month account for a record-setting 29.5 percent of all new vehicles financed
  • increasing willingness to finance on Used Cars
  • whilst average credit score is on downward trend... so thats a move to lower asset quality AND lower credit score
  • average used vehicle loan is increasing.. more people extending themselves
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