It won’t surprise anyone, but Gen Z and Millennials car buyers are lagging far behind pay their car. In fact, it is happening at a rate not seen since the 2008 and 2009 financial crisis auto news. The problem will also get worse. Miss, young people don’t pay back their student loans right now, but that will all change soon.
Medium, AutoNews reported that 3.58 percent of 18 to 29 years old and 2.62 percent of those 30 to 39 years old are at least 90 days late on auto loan payments. For some context, only 2.13 percent of all borrowers are delinquent. Keep in mind, these numbers are overall. In the first quarter of 2023, 4.55% of 18- to 29-year-olds were at least 90 days late. 3.66% of 30- to 39-year-olds were equally late. We haven’t seen numbers like these since then Great Depression.
A spokesperson for Jerry’s, an insurance comparison website, told the outlet that the growth in delinquent loans from the first quarter of 2022 to the first quarter of 2023 was the highest in any period. any 12-month period in the Fed’s 23-year dataset.
It is interesting that the amount of car loan in the first quarter of this year youth 25% decrease compared to the same period last year. It represents the largest quarterly drop in Fed data. Part of the reason for this could be that lenders are tight-lipped about who they give money to.
From the end of Q2 2020 to the end of 2020, consumers under the age of 40 are reported to have committed the largest amount of new auto debt of any 10-quarter period in Fed records.
These financial problems are believed to be rooted in the pandemic, which is not surprising. Stimulus payments and debt relief programs — like the aforementioned student loan pause — The customer’s credit score is improved. Because of that, youth can borrow more to buy a car they already have in the past. God forbid a young person can buy a new car.
Federal Reserve’s quarterly household debt report — which draws from Equifax data to generate a delinquency report for my auto loan — Divide borrowers into age groups including 18 to 29 and 30 to 39. AutoNews reports that these brackets capture older generation Z and nearly all millennials. These two demographics – which I am part of – has a history of more serious crime than the national average. The study covers data from 2000 through the first quarter of this year.
