Car loans in the U.S. are soaring, but don’t expect a crash any time soon.
Personal income gains, coupled with historically low interest rates, should help cushion borrowers and reduce the likelihood of a rise in defaults despite the recent increase in auto lending, according to a new report from London-based Capital Economics Ltd.
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Professionals anticipate higher volatility in the near term, while examining the risks and opportunities amid rising interest rates, with a yearend view.
Loans originated in 2022 or later accounted for 43% of September's foreclosure starts and 49% of completed sales, according to the ICE's first look report.
Discussions center around a deal that would be executed through a court-supervised Chapter 11 sale process or via a shareholder vote.
Ally Financial reported higher auto loan delinquencies and charge-offs in the third quarter, even as loan originations and applications grew. The mixed trends came amid persistent affordability pressures on consumers.
The share of American households considered "financially vulnerable" rose to 17%, the highest level since at least 2018, according to the nonprofit Financial Health Network.
