Auto loan delinquencies rise

Business · Heat 1.2 / 10 · 2 shows · 6m airtime

Marketplace reported on October 7 that auto loan delinquencies are rising at LaSalle State Bank in Illinois and across lower-income borrowers, with payments sliding from 30 or 35 days late to 45 days. New vehicle prices are near $50,000 and used near $27,000, both up about 41% since the pandemic, pushing average new-car payments to $765 a month. Coverage has since widened the frame, describing delinquent auto loans as surging across a $1.7 trillion market. Economists call the trend evidence of the K-shaped economy, though Oxford Economics expects only a tenth-of-a-point drag on overall spending.

How 2 podcasts covered it

1. Marketplace, 2026-10-07 (23:44 to 26:46)
   Reports delinquencies sliding at the loan desk
   Reports from the loan desk: an Illinois bank's auto payments are sliding from 30 days late to 45, with vehicle prices up about 41% since the pandemic and average new-car payments at $765. Economists frame it as the K-shaped economy, not a broad spending hit.
   New angle: Auto loan payments at LaSalle State Bank have slid from 30 or 35 days late to 45 days.
2. Breaking Points with Krystal and Saagar, 2026-10-21 (10:25 to 13:27)
   Explains why auto delinquencies are surging
   Picks up reports of surging auto loan delinquencies in a $1.7 trillion market and explains why the car note is the last payment people stop making, then ties the pooled loans to the financial-crisis playbook.
   New angle: Delinquent auto loans are surging in a $1.7 trillion market.