Car Crunch

At the end of 2022, 9.3% of subprime borrowers, those with FICO scores below 660, were 30 days or more behind on their car payments. This is the highest rate since 2010. In addition to being squeezed financially, it’s partly because used car prices are falling, and when used car prices peaked some dealers sold vehicles that were in very bad condition, making nonpayment financially very advantageous and appealing.