Unpaid Auto Loans Skyrocketing
The Federal Reserve Bank of New York finds there are now more people at least three months behind on auto loan payments than there were after the Great Recession. Some consumer advocates say the problem stems from borrowers having too much time to repay loans.
New data this week from the Federal Reserve Bank of New York shows roughly 7 million people in the U.S. are three months or more behind on their auto loan payments.
That’s more people with delinquent auto loans than there were right after the so-called Great Recession.
The Fed report echoes a similar recent study by the non-profit consumer advocacy organization U.S. Public Interest Research Group.
A co-author of the study, Ed Mierzwinski, tells WDET’s Quinn Klinefelter auto dealers are using a new model for offering loans to consumers.
