Published with permission from South Florida Business Journal
Article written by Ashley Portero
Florida was among the top states in the country with car loan debt during the fourth quarter, according to the New York Federal Reserve’s latest Quarterly Report on Household Debt and Credit.
More than 7 million Americans were at least 90 days delinquent on their car loans in the fourth quarter of 2018, when Americans had almost $1.3 trillion of outstanding auto debt.
That’s a million more past-due loans than during the previous peak at the end of 2010, the Fed reported, indicating that many Americans are having problems meeting their basic expenses, despite a purportedly strong labor market.
According to the Fed, there were more delinquent loans in part because more auto loans were issued in 2018. Approximately $584 billion in new auto loans and leases appeared on U.S. credit reports in 2018, up from $569 billion the year before.
Borrowers with low credit scores were the most likely to fall behind on payments. About 8 percent of borrowers with credit scores under 620 were delinquent, compared to less than one percent for borrowers with credit scores above 720. Read more at South Florida Business Journal.