The share of auto loan balances at least 90 days past due stood at 5.49% in the second quarter of 2026, the second-highest reading in 94 quarters of data back to 2003, according to the Federal Reserve Bank of New York‘s Household Debt and Credit Report. It is up from 4.99% a year earlier and above the financial-crisis-era peak of 5.27%.
The latest figure eased slightly from 5.6% in the first quarter of 2026, but analysts noted the series is not seasonally adjusted, so the year-over-year comparison is the cleaner read. Total auto debt now sits at $1.71 trillion, up $28 billion from the previous quarter, with lenders issuing a record $211 billion in new auto loans in the same quarter.
Subprime borrowers carry the strain
Almost all of the trouble sits with borrowers who financed at subprime and near-prime credit scores, where 60-plus-day delinquencies are at their worst level in more than three decades, according to analysis of the data. Experian’s second-quarter 2026 averages put new-car loan rates at 13.52% for subprime borrowers, against 4.41% for super-prime borrowers.
Most of today’s missed payments trace back to loans originated in 2024 and 2025, when car prices were near record highs. Nearly 30% of trade-ins are underwater by an average of $6,884, and borrowers rolling negative equity into a new loan face an average monthly payment of $944, according to industry data cited in reports.
What to do if you fall behind
Most lenders build a grace period of 10 to 15 days into the agreement, during which a payment can be made without a late fee, according to Capital One’s guidance. Missing that window brings a late fee, and once a payment crosses the 30-day threshold it is reported to credit bureaus, where a 90-day delinquency causes the most damage.
Calling the lender before the 30-day mark to ask about a rate reduction or payment restructure costs nothing and works more often than borrowers expect, advisers said, especially with two years of on-time payments behind them.
Researchers at the Federal Reserve Bank of Philadelphia, who studied accounts at least 60 days late through the fourth quarter of 2025, found that persistent delinquency contributed more to the increase than newly delinquent accounts, according to reports on their study. In other words, many of today’s seriously late balances are older debts that have stayed on the books rather than fresh missed payments. The New York Fed separately reported a 3% flow into serious auto delinquency in the second quarter of 2026, compared with 2.97% in the first quarter. For borrowers, the lesson is that catching up early matters: once a loan is charged off or repossessed, the damage to credit lasts far longer than the missed payment itself.
