‘It’s getting worse’: An increasing number of Americans have stopped paying their car loans
Matt Turner
BusinessInsider.com
3/15/2017
Losses on subprime auto loans have spiked in the last few months, according to Mizuho.
That could spell bad news for US carmakers, consumers, and the economy.
The number of Americans who have stopped paying their car loans appears to be increasing — a development that has the potential to send ripple effects through the US economy.
Losses on subprime auto loans have spiked in the last few months, according to Steven Ricchiuto, Mizuho’s chief US economist. They jumped to 9.1% in January, up from 7.9% in January 2016.
“Recoveries on subprime auto loans also fell to just 34.8%, the worst performance in over seven years,” he said in a note.
“It’s getting worse,” Ricchiuto told Business Insider.
That could spell bad news.
Cars, consumers, and the economy
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