GITNUXREPORT 2026

Auto Loan Default Statistics

Auto loan defaults are rising nationwide, especially among subprime borrowers and used vehicles.

Jannik Lindner

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: Feb 13, 2026

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Statistic 1

In 2022, the national auto loan default rate for prime borrowers stood at 1.2%, while subprime borrowers experienced a 7.8% default rate according to Federal Reserve data

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During Q4 2023, auto loan defaults among new vehicle loans averaged 2.1% nationwide, up from 1.5% in the prior year per New York Fed analysis

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Subprime auto loan default rates climbed to 9.5% in 2023 for loans originated in 2022, as reported by Experian

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The 90-day auto loan default rate for used cars reached 4.3% in mid-2023 among borrowers with credit scores below 600, per TransUnion insights

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In 2021, overall auto loan default rates were 2.4% for the year, but spiked to 3.1% by year-end due to economic pressures, from Cox Automotive data

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Prime auto loan defaults averaged 0.8% in 2020 but rose to 1.9% in 2023, according to Equifax reports

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For leases transitioning to loans, default rates hit 5.2% in 2023 for off-lease vehicles, per Ally Financial disclosures

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Auto loan default rates for electric vehicles were 1.1% lower than ICE vehicles at 2.7% in 2023, from Recurrent Auto study

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In California, auto loan defaults reached 3.4% in 2022 for new loans, higher than the national 2.6% average, per state banking reports

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Deep subprime (credit score <500) auto defaults were 12.4% in Q1 2024, up 20% YoY, via S&P Global

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In Q1 2023, Midwest auto default rates were 2.9%, below national 3.2% average, per regional Fed data

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Southeast subprime defaults hit 8.7% in 2023 due to hurricane impacts, Atlanta Fed

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Northeast prime auto defaults steady at 1.1% through 2023, Boston Fed reports

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West Coast used auto defaults 4.8% in 2023 amid high living costs, San Francisco Fed

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In 2023, South auto default rates averaged 4.2%, highest regionally, per Fed surveys

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Pacific Northwest defaults 3.1% for autos amid tech layoffs 2023, Seattle Fed

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Great Lakes region defaults 3.5% average 2023 autos, Cleveland Fed

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National 60-day delinquency rate for auto loans was 3.84% in Q3 2023, per Federal Reserve Bank of New York

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Subprime auto loan 30-day delinquencies hit 6.2% in late 2023, compared to 1.9% for prime, from TransUnion TrueAnalytics

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Used auto loan 90+ day delinquencies rose to 5.1% in Q4 2023, per Experian Automotive

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In 2023, early delinquency (30 days) for new auto loans averaged 2.3%, up from 1.8% in 2022, Cox Automotive data

Statistic 22

Serious delinquency (90+ days) for auto loans reached 4.04% in February 2024, highest since 2011, New York Fed

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Among Gen Z borrowers, auto loan delinquency rates were 7.1% in 2023, per Upstart network data

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Lease delinquencies were 2.8% for 60+ days in Q3 2023, lower than purchase loans at 4.1%, Ally Financial

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Regional delinquency rates showed Texas at 4.9% for auto loans in 2023, vs national 3.7%, Equifax

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Buy-here-pay-here (BHPH) lots reported 15.2% delinquency rates in 2023, per NIADA survey

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Auto loan delinquencies for loans over $50k averaged 3.2% in 2023, higher for luxury segments, J.D. Power

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Auto delinquency in 30-59 days for prime was 1.45% nationally Q2 2024, NY Fed

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Superprime (760+ score) delinquencies minimal at 0.62% in 2023, Experian

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New York state auto 90-day delinquencies 3.9% in 2023, state DFS

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Florida saw 5.6% delinquency rise in auto loans post-2023 storms, Equifax regional

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60+ day delinquencies for luxury autos 2.9% in 2023, lower than mass market 4.2%, J.D. Power

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Illinois state delinquency 4.1% for subprime autos Q3 2023, state reports

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90-day delinquencies peaked at 4.9% for non-captive lenders 2023, Captive Finance Assoc

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45.2% of subprime auto borrowers with incomes under $50k showed delinquency signs in 2023, TransUnion

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African American auto borrowers had default rates 2.5x higher than white borrowers at 8.1% vs 3.2% in 2022, per Consumer Financial Protection Bureau (CFPB)

Statistic 37

Borrowers aged 18-29 had 6.8% auto delinquency rates in 2023, vs 2.1% for 50+, Experian data

Statistic 38

Female-headed households showed 4.7% higher auto loan default propensity than male in 2023 studies, Federal Reserve

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Hispanic borrowers' auto default rates were 5.9% in 2022, 1.8x non-Hispanic white at 3.3%, Urban Institute

Statistic 40

Low-income (<$40k) auto borrowers defaulted at 10.2% rate in 2023, per Credit Karma analysis

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Urban vs rural borrowers: urban default rates 4.1% vs rural 3.2% in 2023 auto loans, Fannie Mae data

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Veterans had lower auto delinquency at 2.9% vs non-vets 4.2% in 2022, VA financial reports

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College-educated borrowers defaulted 1.7% less on auto loans than non-college in 2023, Lumina Foundation study

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Single borrowers showed 5.3% delinquency vs 3.1% married in 2023 auto data, Pew Research

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Borrowers with student debt over $50k had 7.4% higher auto delinquency, Fed NY

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Asian American auto default rates lowest at 2.1% vs other groups in 2023, CFPB

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Rural low-income borrowers defaulted 9.2% on autos in 2023, USDA Econ Research

Statistic 48

Millennial (28-43) delinquency 4.5%, highest demographic in 2023 autos, TransUnion

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High school only education correlated with 11.3% default rate on autos 2022, Census Bureau

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Borrowers over 65 had stable 1.8% delinquency on autos 2023, AARP study

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LGBTQ+ borrowers showed 5.1% higher default rates in auto lending 2022 survey, Williams Institute

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Gig economy workers defaulted 8.9% on autos due to income volatility 2023, Upwork data

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Native American borrowers on reservations had 12.1% auto delinquency 2023, HUD data

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Self-employed borrowers default rate 6.7% higher than salaried 2023, SBA reports

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High inflation in 2023 correlated with 28% rise in auto defaults as CPI hit 9.1% peak, Federal Reserve analysis

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Unemployment rate above 5% led to 15% higher auto delinquency in affected regions 2023, BLS data

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Interest rates rising to 7.5% APR boosted subprime defaults by 22% in 2023, Freddie Mac

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Gas prices over $4/gallon increased used auto delinquencies 12% in 2022, EIA reports

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GDP slowdown to 1.6% in 2023 linked to 3.2% uptick in national auto defaults, IMF study

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Housing cost burdens over 30% of income correlated with 8.5% auto delinquency rise, Harvard JCHS

Statistic 61

Pandemic stimulus end in 2022 caused 18% spike in lower-income auto delinquencies, Treasury Dept

Statistic 62

Supply chain disruptions raised new car prices 25%, leading to 4.1% higher financed defaults, McKinsey

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Corporate default rates in auto sector at 2.8% influenced consumer loan performance in 2023, Moody's

Statistic 64

Recession fears in 2023 drove 14% increase in precautionary auto delinquencies, Chicago Booth study

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Used car price drop 10% in late 2023 worsened recoveries but stabilized defaults, Kelley Blue Book

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Credit card utilization over 80% linked to 6x auto delinquency risk 2023, VantageScore

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Mortgage rates at 7%+ pushed 9% more households into auto payment stress, MBA

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Corporate tax hikes proposed correlated with small business owner auto defaults up 11%, NFIB

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EV incentive cuts led to 3.2% higher financed EV delinquencies 2023, DOE reports

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Consumer confidence index drop to 69 in 2023 boosted delinquencies 17%, Conference Board

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Supply shortages inflated LTV ratios to 110%, raising defaults 19%, Oliver Wyman

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Healthcare cost inflation 8% linked to 7% auto delinquency uptick 2023, Kaiser Family

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Post-recovery rates for repossessed autos averaged 45.2% of principal in 2023, Equifax recovery study

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Loss severity on defaulted auto loans was 38.7% for subprime in Q4 2023, S&P Global Ratings

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Average recovery value for used vehicles post-default was $12,450 in 2023, Manheim Auction data

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Lender loss-given-default (LGD) for prime autos was 25.4%, vs 52.1% subprime in 2022, Federal Reserve

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Repossession recovery rates improved to 58% for 2023 originations due to strong used market, Cox Automotive

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Net charge-off rates for auto loans hit 3.9% industry-wide in 2023, FDIC call reports

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EV auto loan recoveries averaged 10% lower at 42% due to depreciation, Recurrent data

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BHPH recovery through re-sale was 35.6% of loan value in 2023 surveys, NIADA

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Overall portfolio loss rates for auto ABS deals were 4.2% cumulative in 2023, DBRS Morningstar

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Cumulative net losses on 2022 vintage auto loans at 2.8% by mid-2024, Fitch Ratings

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Average LGD for leased autos post-default 28.4% in 2023, GM Financial reports

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Repo auction recoveries peaked at 62% for 2021 models in 2023, ADESA data

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Charge-offs for non-prime autos rose 25% YoY to 4.5% in Q1 2024, OCC

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Vintage 2020 auto loans showed 1.2% cumulative defaults by 2023 end, low due to forbearance, Moody's

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Ford Credit reported 3.1% charge-off rate on retail auto loans 2023, annual report

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Loss rates on ABS auto pools averaged 3.65% for 2023Q4, Kroll Bond Rating

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Cumulative losses on subprime auto ABS reached 7.8% for 2022 vintages mid-2024, S&P

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Average repo recovery time 45 days in 2023, down from 60, AFC data

1/90

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While the dream of car ownership feels universal, the stark reality of auto loan defaults reveals a financial landscape where prime borrowers default at a rate of 1.2% but subprime borrowers face a staggering 7.8%, a disparity that underscores the complex economic pressures explored in the statistics ahead.

Key Takeaways

In 2022, the national auto loan default rate for prime borrowers stood at 1.2%, while subprime borrowers experienced a 7.8% default rate according to Federal Reserve data
During Q4 2023, auto loan defaults among new vehicle loans averaged 2.1% nationwide, up from 1.5% in the prior year per New York Fed analysis
Subprime auto loan default rates climbed to 9.5% in 2023 for loans originated in 2022, as reported by Experian
National 60-day delinquency rate for auto loans was 3.84% in Q3 2023, per Federal Reserve Bank of New York
Subprime auto loan 30-day delinquencies hit 6.2% in late 2023, compared to 1.9% for prime, from TransUnion TrueAnalytics
Used auto loan 90+ day delinquencies rose to 5.1% in Q4 2023, per Experian Automotive
45.2% of subprime auto borrowers with incomes under $50k showed delinquency signs in 2023, TransUnion
African American auto borrowers had default rates 2.5x higher than white borrowers at 8.1% vs 3.2% in 2022, per Consumer Financial Protection Bureau (CFPB)
Borrowers aged 18-29 had 6.8% auto delinquency rates in 2023, vs 2.1% for 50+, Experian data
High inflation in 2023 correlated with 28% rise in auto defaults as CPI hit 9.1% peak, Federal Reserve analysis
Unemployment rate above 5% led to 15% higher auto delinquency in affected regions 2023, BLS data
Interest rates rising to 7.5% APR boosted subprime defaults by 22% in 2023, Freddie Mac
Post-recovery rates for repossessed autos averaged 45.2% of principal in 2023, Equifax recovery study
Loss severity on defaulted auto loans was 38.7% for subprime in Q4 2023, S&P Global Ratings
Average recovery value for used vehicles post-default was $12,450 in 2023, Manheim Auction data

Auto loan defaults are rising nationwide, especially among subprime borrowers and used vehicles.

Default Rates

In 2022, the national auto loan default rate for prime borrowers stood at 1.2%, while subprime borrowers experienced a 7.8% default rate according to Federal Reserve data
During Q4 2023, auto loan defaults among new vehicle loans averaged 2.1% nationwide, up from 1.5% in the prior year per New York Fed analysis
Subprime auto loan default rates climbed to 9.5% in 2023 for loans originated in 2022, as reported by Experian
The 90-day auto loan default rate for used cars reached 4.3% in mid-2023 among borrowers with credit scores below 600, per TransUnion insights
In 2021, overall auto loan default rates were 2.4% for the year, but spiked to 3.1% by year-end due to economic pressures, from Cox Automotive data
Prime auto loan defaults averaged 0.8% in 2020 but rose to 1.9% in 2023, according to Equifax reports
For leases transitioning to loans, default rates hit 5.2% in 2023 for off-lease vehicles, per Ally Financial disclosures
Auto loan default rates for electric vehicles were 1.1% lower than ICE vehicles at 2.7% in 2023, from Recurrent Auto study
In California, auto loan defaults reached 3.4% in 2022 for new loans, higher than the national 2.6% average, per state banking reports
Deep subprime (credit score <500) auto defaults were 12.4% in Q1 2024, up 20% YoY, via S&P Global
In Q1 2023, Midwest auto default rates were 2.9%, below national 3.2% average, per regional Fed data
Southeast subprime defaults hit 8.7% in 2023 due to hurricane impacts, Atlanta Fed
Northeast prime auto defaults steady at 1.1% through 2023, Boston Fed reports
West Coast used auto defaults 4.8% in 2023 amid high living costs, San Francisco Fed
In 2023, South auto default rates averaged 4.2%, highest regionally, per Fed surveys
Pacific Northwest defaults 3.1% for autos amid tech layoffs 2023, Seattle Fed
Great Lakes region defaults 3.5% average 2023 autos, Cleveland Fed

Default Rates Interpretation

The data paints a stark, two-tiered road where prime borrowers navigate with relative ease while subprime drivers, squeezed by economic potholes and regional storms, are increasingly running out of gas.

Delinquency Rates

National 60-day delinquency rate for auto loans was 3.84% in Q3 2023, per Federal Reserve Bank of New York
Subprime auto loan 30-day delinquencies hit 6.2% in late 2023, compared to 1.9% for prime, from TransUnion TrueAnalytics
Used auto loan 90+ day delinquencies rose to 5.1% in Q4 2023, per Experian Automotive
In 2023, early delinquency (30 days) for new auto loans averaged 2.3%, up from 1.8% in 2022, Cox Automotive data
Serious delinquency (90+ days) for auto loans reached 4.04% in February 2024, highest since 2011, New York Fed
Among Gen Z borrowers, auto loan delinquency rates were 7.1% in 2023, per Upstart network data
Lease delinquencies were 2.8% for 60+ days in Q3 2023, lower than purchase loans at 4.1%, Ally Financial
Regional delinquency rates showed Texas at 4.9% for auto loans in 2023, vs national 3.7%, Equifax
Buy-here-pay-here (BHPH) lots reported 15.2% delinquency rates in 2023, per NIADA survey
Auto loan delinquencies for loans over $50k averaged 3.2% in 2023, higher for luxury segments, J.D. Power
Auto delinquency in 30-59 days for prime was 1.45% nationally Q2 2024, NY Fed
Superprime (760+ score) delinquencies minimal at 0.62% in 2023, Experian
New York state auto 90-day delinquencies 3.9% in 2023, state DFS
Florida saw 5.6% delinquency rise in auto loans post-2023 storms, Equifax regional
60+ day delinquencies for luxury autos 2.9% in 2023, lower than mass market 4.2%, J.D. Power
Illinois state delinquency 4.1% for subprime autos Q3 2023, state reports
90-day delinquencies peaked at 4.9% for non-captive lenders 2023, Captive Finance Assoc

Delinquency Rates Interpretation

While the overall auto loan market is not yet careening off a cliff, the worrying surge in delinquencies—especially among subprime, used car, and Gen Z borrowers—reveals an engine of financial strain sputtering loudly beneath the national hood.

Demographic Factors

45.2% of subprime auto borrowers with incomes under $50k showed delinquency signs in 2023, TransUnion
African American auto borrowers had default rates 2.5x higher than white borrowers at 8.1% vs 3.2% in 2022, per Consumer Financial Protection Bureau (CFPB)
Borrowers aged 18-29 had 6.8% auto delinquency rates in 2023, vs 2.1% for 50+, Experian data
Female-headed households showed 4.7% higher auto loan default propensity than male in 2023 studies, Federal Reserve
Hispanic borrowers' auto default rates were 5.9% in 2022, 1.8x non-Hispanic white at 3.3%, Urban Institute
Low-income (<$40k) auto borrowers defaulted at 10.2% rate in 2023, per Credit Karma analysis
Urban vs rural borrowers: urban default rates 4.1% vs rural 3.2% in 2023 auto loans, Fannie Mae data
Veterans had lower auto delinquency at 2.9% vs non-vets 4.2% in 2022, VA financial reports
College-educated borrowers defaulted 1.7% less on auto loans than non-college in 2023, Lumina Foundation study
Single borrowers showed 5.3% delinquency vs 3.1% married in 2023 auto data, Pew Research
Borrowers with student debt over $50k had 7.4% higher auto delinquency, Fed NY
Asian American auto default rates lowest at 2.1% vs other groups in 2023, CFPB
Rural low-income borrowers defaulted 9.2% on autos in 2023, USDA Econ Research
Millennial (28-43) delinquency 4.5%, highest demographic in 2023 autos, TransUnion
High school only education correlated with 11.3% default rate on autos 2022, Census Bureau
Borrowers over 65 had stable 1.8% delinquency on autos 2023, AARP study
LGBTQ+ borrowers showed 5.1% higher default rates in auto lending 2022 survey, Williams Institute
Gig economy workers defaulted 8.9% on autos due to income volatility 2023, Upwork data
Native American borrowers on reservations had 12.1% auto delinquency 2023, HUD data
Self-employed borrowers default rate 6.7% higher than salaried 2023, SBA reports

Demographic Factors Interpretation

The statistics reveal a sobering truth: the road to reliable transportation is paved with financial potholes that disproportionately jolt those who are younger, less affluent, or marginalized by systemic inequalities.

Economic Influences

High inflation in 2023 correlated with 28% rise in auto defaults as CPI hit 9.1% peak, Federal Reserve analysis
Unemployment rate above 5% led to 15% higher auto delinquency in affected regions 2023, BLS data
Interest rates rising to 7.5% APR boosted subprime defaults by 22% in 2023, Freddie Mac
Gas prices over $4/gallon increased used auto delinquencies 12% in 2022, EIA reports
GDP slowdown to 1.6% in 2023 linked to 3.2% uptick in national auto defaults, IMF study
Housing cost burdens over 30% of income correlated with 8.5% auto delinquency rise, Harvard JCHS
Pandemic stimulus end in 2022 caused 18% spike in lower-income auto delinquencies, Treasury Dept
Supply chain disruptions raised new car prices 25%, leading to 4.1% higher financed defaults, McKinsey
Corporate default rates in auto sector at 2.8% influenced consumer loan performance in 2023, Moody's
Recession fears in 2023 drove 14% increase in precautionary auto delinquencies, Chicago Booth study
Used car price drop 10% in late 2023 worsened recoveries but stabilized defaults, Kelley Blue Book
Credit card utilization over 80% linked to 6x auto delinquency risk 2023, VantageScore
Mortgage rates at 7%+ pushed 9% more households into auto payment stress, MBA
Corporate tax hikes proposed correlated with small business owner auto defaults up 11%, NFIB
EV incentive cuts led to 3.2% higher financed EV delinquencies 2023, DOE reports
Consumer confidence index drop to 69 in 2023 boosted delinquencies 17%, Conference Board
Supply shortages inflated LTV ratios to 110%, raising defaults 19%, Oliver Wyman
Healthcare cost inflation 8% linked to 7% auto delinquency uptick 2023, Kaiser Family

Economic Influences Interpretation

The data paints a stark picture: American wallets are being methodically flattened by a tag team of inflation, high rates, and economic anxiety, turning the simple car payment into a complex barometer of financial distress.

Recovery and Loss Metrics

Post-recovery rates for repossessed autos averaged 45.2% of principal in 2023, Equifax recovery study
Loss severity on defaulted auto loans was 38.7% for subprime in Q4 2023, S&P Global Ratings
Average recovery value for used vehicles post-default was $12,450 in 2023, Manheim Auction data
Lender loss-given-default (LGD) for prime autos was 25.4%, vs 52.1% subprime in 2022, Federal Reserve
Repossession recovery rates improved to 58% for 2023 originations due to strong used market, Cox Automotive
Net charge-off rates for auto loans hit 3.9% industry-wide in 2023, FDIC call reports
EV auto loan recoveries averaged 10% lower at 42% due to depreciation, Recurrent data
BHPH recovery through re-sale was 35.6% of loan value in 2023 surveys, NIADA
Overall portfolio loss rates for auto ABS deals were 4.2% cumulative in 2023, DBRS Morningstar
Cumulative net losses on 2022 vintage auto loans at 2.8% by mid-2024, Fitch Ratings
Average LGD for leased autos post-default 28.4% in 2023, GM Financial reports
Repo auction recoveries peaked at 62% for 2021 models in 2023, ADESA data
Charge-offs for non-prime autos rose 25% YoY to 4.5% in Q1 2024, OCC
Vintage 2020 auto loans showed 1.2% cumulative defaults by 2023 end, low due to forbearance, Moody's
Ford Credit reported 3.1% charge-off rate on retail auto loans 2023, annual report
Loss rates on ABS auto pools averaged 3.65% for 2023Q4, Kroll Bond Rating
Cumulative losses on subprime auto ABS reached 7.8% for 2022 vintages mid-2024, S&P
Average repo recovery time 45 days in 2023, down from 60, AFC data

Recovery and Loss Metrics Interpretation

While the used car market's resilience has lenders recovering over half their money on repossessed cars, the stark reality is that a default still costs them nearly 40 cents on the dollar on average, with subprime borrowers and electric vehicles presenting particularly costly headaches.