Auto loan delinquencies have hit a 30-year high, with 6.56% of subprime borrowers at least 60 days behind on payments in January, according to Fitch Ratings.

Rising car prices, high borrowing costs, and inflation are driving more repossessions, while serious delinquencies (90+ days) reached 3% in Q4, the highest since 2010.

The economic slowdown, Trump’s trade wars, and financial strain on lower-income borrowers are fueling concerns, Financial Advisor has reported.

Delinquencies typically peak early in the year before improving with tax refunds, but consumer debt and confidence are also showing signs of decline.

Written by B.C. Begley