U.S. auto delinquencies have jumped 50% from 15 years ago

Consumers of all income brackets are struggling to make monthly car payments, according to VantageScore, a credit scoring company.

Car loans were once a safe haven, as drivers prioritized payments on their transportation above other debts. But delinquencies on auto loans, defined as payments that are 60 days or more late, jumped 51.5% from the first quarter of 2010 to the first quarter of 2025. The opposite is true for credit cards, personal loans and most other forms of consumer credit.

The study found that 1.6% of all auto loans were 60 days or more delinquent as of July 2025, while credit card and first mortgage loans were delinquent at less than 1%. American consumers bought about 16 million new cars last year, most of which were financed. There are approximately 300 million cars on the road in America.

VantageScore found that, in relative terms, monthly car payments are increasing faster than mortgage payments.

“We are seeing a huge increase in the cost of cars and the cost associated with car ownership,” Rickard Bandebo, chief economist at VantageScore, said in an interview. “In the last five years, it has increased faster.”

Since 2019, new car prices have risen more than 25% and now exceed $50,000 on average, according to researcher Cox Automotive. The average monthly payment for a new car was $767 in the third quarter, and one in five borrowers are paying more than $1,000 a month, according to auto research site Edmunds.com. Interest rates on new car loans now exceed 9%, exacerbating the car affordability crisis.

“It’s a double whammy,” Bandebo said. “I was affected by the increased cost of the car and then the cost of financing the car.”

No income group is immune. The study found that prime and semi-prime borrowers, who typically have good credit scores, are actually falling behind on car payments at a faster rate than subprime consumers since lenders tightened financing standards for lower-scoring borrowers three years ago.

“The higher your income, you tend to at least feel like you can own a more expensive car,” Bandebo said.

The average auto loan balance has grown 57% since 2010, outpacing all other credit products, VantageScore found.

To get an affordable monthly payment, car buyers are extending their loan terms to seven years or more. This leaves a growing number of consumers “upside down” on their loans, meaning they owe more than the car is worth.

The trend of non-payment auto payments is unlikely to reverse as American consumers continue to purchase more expensive trucks and sport utility vehicles. Automakers also offer fewer affordable models.

“Consumers are in a more precarious situation now than they have been since the last recession,” Bandebo said. “We have seen this growing trend over the past several years as more and more consumers struggle to make ends meet, and this trend looks set to continue into the coming year.”