US auto loan delinquencies focused in new lending – study
Lower credit standards and higher payments, not interest rates, are key contributing factors
Auto loan delinquencies in the US are concentrated in loans originated since 2022, according to research from the Federal Reserve Board.
The study, published on September 26, says delinquencies rose to historically high levels by the end of 2023. The cause of the increase, it says, is higher monthly payments – driven by greater loan amounts – rather than higher-for-longer interest rates.
The authors – Robert Adams, Vitaly Bord and Haja Sannoh – say the increase in loan amounts is likely to reflect
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