A record number of Americans are now behind on their auto payments. Buyers struggle to make their payments while wages stagnate and unemployment rates rise — both factors feeding the cycle of those falling behind. It costs money to be poor, as the saying goes. Of equal concern is the growing number of buyers with low credit, rising above 14 percent in September 2025.
WSJ: Buyers Can’t Afford Their Cars
A report from the Wall Street Journal indicates that more than 14% of new car buyers have credit scores below 650. Generally, anyone with a credit score below 659 is considered near-prime, and those with a score south of 619 are considered sub-prime. Meanwhile, delinquency rates are steady. That percentage is the highest it has been since 2016.
In 2024, around 1.73 million vehicles were repossessed, which is the highest total since 2009. Meanwhile, the average monthly car payment is more than $750, with almost 20% of all loans and leases exceeding a total of $1,000 a month.
Automakers Slacken Credit Requirements To Move Inventory
The number of subprime auto loans that are at least 60 days overdue hit a 6% high this year. Subprime loans usually make up a very small percentage of the total auto loan market. These extremely high-risk loans aren’t something financial entities want to make, but an increase shows that lending institutions are. The financial arms of automakers loosened up their credit requirements over the summer to help move cars off the lot.
Ford said it would target low-credit buyers with lower interest rates to help move unsold F-150s. Ford told the WSJ that around 3% to 4% of its loan portfolio is made up of what the brand considers to be “higher-risk consumers.” Meanwhile, GM Financial handed out loans to low-credit buyers. 12% of the General Motors credit arm’s loans are comprised of buyers with scores under 620.
2009’s financial collapse, of course, looms large. The phrase “subprime mortgage” still invokes vivid memories of hard times for many Americans, and debt-saddled buyers are faced with steadily worsening economic circumstances. When statistics from reports like this start using the phrase “since 2009” after a statistic, it may be time to show some concern.
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