Loan Delinquencies Are Also on the Rise in 2023
With a record 16% of American consumers paying at least $1,000 a month for their cars, it's no surprise that drivers are starting to fall behind on their bills.
The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.Recent reports would suggest that many may have been left without the ability to even meet their expenses – let alone find extra room in the budget to pay more towards their car loans. According to a report from Cox Automotive, auto loan delinquency rates have climbed to their highest levels in over 15 years.
Auto loans are considered to be “severely delinquent” when past due by 60 days or more. The data from Cox Automotive shows that 1.89% of all auto loans were severely delinquent in January, 2023 and at the highest rate since 2006, the first year included in the data series.
However, the trend is even more pronounced among borrowers with lower credit scores. The research found that among subprime auto loans, 7.3% were severely delinquent. This rate represents a more than 7% increase over the previous year and is also the highest rate since at least 2006.
Will I Be Notified Before the Repossession? How?
You don't have to be notified before a car repossession under Pennsylvania's Motor Vehicle Sales Finance Act. You do have to be notified immediately after the auto repossession though.
