Cars have become liabilities for many Americans due to high inflation and a slowing economy. Delinquencies, defaults, and repossessions are on the rise. Credit access has become more difficult, with fewer people applying and increased rejection rates. The automotive industry has seen a decrease in loan originations, and although car prices have fallen, lenders have become more cautious. Despite job growth, the unemployment rate has ticked up. Car repossessions have increased, but trends are slowly returning to normal. Delinquencies have accelerated, but defaults haven’t risen as steeply.
