In 2014, new car sales increased to 16.5 million, the highest level since 2006, but did too many car buyers take on more than they could afford?
A Wall Street Journal/Moodys report looks at just those consumers who took out a car loan in the first quarter of 2014. In that short period of time, more than 2.6% of these borrowers have missed at least one payment.
That percentage might not seem terribly high to you, but it is the highest level of early loan trouble since 2008. At that time, early delinquencies rose above 3% just before the housing market crashed.
The WSJ analysis found that 8.4% of subprime auto loan borrowers during the first quarter of 2014 had missed at least one payment by November. Again, this represents the highest early delinquency level since 2008, when passed the 9% mark.
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