Not only have car loans risen, Americans are carrying car loans for longer periods of time. The percentage of auto debt that is seriously delinquent – meaning 90 days late or more – is the highest it has been since 2012 and is still climbing. After mortgages, car loans have been the highest level of Americans’ debt, but recently student loans have overtaken auto loans. Efforts to reduce auto insurance rates need to address disparities in pricing in order to achieve meaningful improvements in affordability." A number of states already prohibit the use of credit scores to set interest rates for car loans.

Source: Forbes May 01, 2019 17:37 UTC