Auto Loan Delinquencies Hit 1 in 8 Borrowers Seeking Help as Insurance Costs Jump 37.5%
Updated
Updated · News3LV · Jun 2
Auto Loan Delinquencies Hit 1 in 8 Borrowers Seeking Help as Insurance Costs Jump 37.5%
1 articles · Updated · News3LV · Jun 2
Summary
More than one in eight consumers with auto loans who sought financial counseling were already delinquent, according to a new Money Management International report.
Those borrowers owed an average $32,500 on their loans and were nearly $7,000 behind, as rising car ownership costs strained household budgets.
Insurance was a key pressure point: average annual premiums reached $2,277 after surging 37.5% since 2021, outpacing income growth of 23.9%.
Younger adults, renters and lower-income households were hit hardest, underscoring how missed car payments can threaten both employment access and broader financial stability.
The findings align with LendingTree data showing nearly four in 10 Americans now view car ownership as a luxury they cannot afford, with borrowers spending about 15% of income on car costs.