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New data released by both the Federal Reserve Bank of New York and Fitch Ratings shows that Americans are falling behind on their car payments at the highest rate in more than 30 years.

According to Fitch Ratings, 6.56% of subprime auto borrowers—those with credit scores of 640 or below—were at least 60 days past due on their loans in January 2025, the highest rate since the agency began tracking this data in 1994. The Federal Reserve Bank of New York also found that 3% of all auto loans transitioned into serious delinquency (90 or more days past due) in the fourth quarter of 2024, marking the highest level since 2010. While delinquencies are most pronounced among subprime borrowers, prime borrowers also saw a slight increase, with 0.39% being at least 60 days overdue in January 2025, up from 0.35% a year prior.

Beyond loan delinquencies, other financial indicators suggest increasing strain on American consumers. The number of credit card holders making only minimum payments has reached a 12-year high, while overall consumer debt has surged to record levels.

The Philadelphia Federal Reserve reported that in the third quarter of 2024, 30-day delinquencies on credit accounts rose to 3.52%, doubling from their pandemic low in 2021. Rising car ownership costs—including a nearly $10,000 increase in average new car prices since 2020, interest rates exceeding 9% on new car loans and 14% on used cars, and a 19% rise in car insurance rates year-over-year—have contributed to the financial burden.

This comes as some economists warn that inflation could rise in 2025. Morgan Stanley economists now anticipate a 2.5% increase in inflation for the year, revising their previous estimate of 2.3% released in December.