The number of Americans failing to pay their auto loans has risen to the highest level in a decade as borrowing costs rise.
Credit agency TransUnion tracks more than 81 million auto loans throughout the United States.
It announced that 1.65 percent of auto loans, or 200,000 customers, were at least 60 days behind their payments in the third quarter, which is the highest rate of delinquencies in over a decade.
The Federal Reserve’s move to fight growing inflation has forced it to raise interest rates, causing a growing number of Americans to fall behind in paying off their debts.
“Consumers still want to stay current as best that they can. It’s just this inflationary environment is making it challenging,” Satyan Merchant, senior vice president of TransUnion, told CNBC….