US consumers are struggling with car payments at the highest rate since 1994. According to data from Fitch Ratings, 6.56% of subprime auto borrowers were at least 60 days delinquent on their monthly payments in January, a record high. This increase is attributed to lower income levels and the ongoing impact of higher inflation and interest rates.
In contrast, prime borrowers with credit scores above 640 had only 0.39% of loans that were 60 days or more past due. The Federal Reserve Bank of New York also reported that 3% of car loans had sunk into serious delinquency during the fourth quarter, a 14-year high.
Meanwhile, credit card delinquencies reached 11.35%, with a 2% increase from the previous quarter and a 17% rise year over year.
Experts warn that Americans’ financial health is under threat due to declining consumer confidence and uncertainty in the market. The Federal Reserve Beige Book highlighted these concerns, citing worries about tariffs and a dip in consumer spending.
Meta Platforms Inc has also been investing heavily in AI technology, with plans to introduce improved voice features in its Llama 4 AI. This move aims to expand AI capabilities beyond social media platforms and generate revenue from it.
The company believes that conversational AI will be the future of AI-powered agents, rather than text-based ones. Meta is considering introducing paid advertising or sponsored posts into its search results and exploring the possibility of lower restrictions on what its AI models can output.
Source: https://www.pymnts.com/loans/2025/late-car-payments-hit-highest-rate-in-more-than-30-years