A growing number of Americans are falling behind on their car payments, an ominous sign for the U.S. economy as high auto prices and stubborn inflation strain household budgets.
Car repossessions tumbled in the early days of the pandemic as the government sent trillions in stimulus money to American homes and businesses. But repossessions have progressively ticked higher as sky-high prices for used and new cars alike forced consumers to take out bigger loans.
In September, the percentage of auto borrowers who were at least 60 days late on their bills rose to 6.11%, according to a Fitch Ratings report obtained by FOX Business. That marks the highest default level in nearly three decades and is a notable increase from the previous record of 5.93% in January.
Unsurprisingly, vehicle repossessions are also expected to climb in coming months. Cox Automotive estimates that 1.5 million vehicles will be seized by the end of 2023, up from 1.2 million last year. That remains below the typical pre-pandemic level.
Read more at FOXNEWS.com
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