Summary
- The 60-plus-day delinquency rate of subprime auto loans rose to 6.15% in December, a new record for December, in the data from Fitch.
- Subprime delinquency rates rose to record highs in 2023 and further in 2024. They peak seasonally in January in February. If January and February 2025 follow seasonal patterns, subprime delinquency rates will set new all-time highs.
- But for “prime” auto loan ABS, the 60-plus-day delinquency rate has been in pristine condition, at 0.37% in December.
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We’re in the 4th cycle of the subprime profit motive after auto loan securitizations became a thing in the early 1990s.
The 60-plus-day delinquency rate of subprime auto loans rose to 6.15% in December, a new
Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.
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