Car Loan Defaults Hit Record High as Interest Rate Hikes Bite

Auto loan defaults in the United States have hit their highest level on record, according to data from Fitch Ratings that goes back to 1994.

A sign about credit requirements is displayed at Amigos Auto Sales in Richmond, Calif., on Sept. 06, 2023. Justin Sullivan/Getty Images

A fresh sign of consumer stress has appeared amid the Federal Reserve’s rapid rate hikes, with Fitch Ratings data showing that car loan defaults have hit their highest level on record.

The percentage of subprime auto borrowers that are at least 60 days past due rose in September to 6.11 percent, a delinquency rate not seen in the history of Fitch’s auto loan 60-plus delinquency index, which started tracking car loan defaults in 1994.