The Federal Reserve Bank of new York reported that a record seven million Americans are at least 90 days behind on their auto loan payments, which exceeds the number recorded during the wake of the financial crisis. Some economists see it as a red flag that so many are struggling to meet their bills in a time of a strong economy and low unemployment rate.
The New York Fed noted: “The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market. . . A car loan is typically the first payment people make. . .When car loan delinquencies rise, it is usually a sign of significant duress among low-income and working-class Americans.”