As it stands right now subprime auto buyers in areas of Chicago, New York, and Indianapolis just to name a few places are defaulting on their auto loans. It’s not completely their fault it’s a sign of the times.
Subprime credit car buyers are defaulting on car loans
Around eight percent of subprime car owners have defaulted. People with bad credit are falling behind on all types of payments from personal loans, credit cards, and car loans. This is a sign that all the good lending that has been happening is about to come to an end.
Some people saw some relief from the pandemic and had some financial help, we all did but now it’s slowly going back to unpaid bills. Yes, it was easy to get a bad credit auto loan in areas of Minneapolis for a used car but now those car buyers are feeling the pain of not being able to pay at all.
Subprime car buyers are dealing with late payments
About nine percent of car buyers with bad credit are 60 days behind or more on their car loan.
In a nutshell with the rising gas prices to almost five dollars, people have to make decisions on making their car payments on time or putting gas in their car to most likely get to work to feed their family and pay the bills they can.
It’s hard right now to find used cars even online
Some car buyers are even finding it hard to purchase used cars online and most car dealerships right now in Michigan at least want you to call to pre-order your vehicles. That just means that the local car dealership near me doesn’t want to buy a fleet of cars and have them sit on their car lot for months.
Plus you’re still seeing a lot of people that work remotely so that means fewer cars are on the road. Not to mention people are holding on to used cars for long so they don’t have to spend a fortune searching for new cars on local car lots.