Unpaid Auto Loans Skyrocketing

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Image credit: Quinn Klinefelter/WDET

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.

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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.

 

Click on the audio link above to hear the full interview


Quinn Klinefelter, Senior News Editor

Quinn Klinefelter is a Senior News Editor at 101.9 WDET. In 1996, he was literally on top of the news when he interviewed then-Senator Bob Dole about his presidential campaign and stepped on his feet.

qklinefelter@wdet.org

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