New Hyundai cars are displayed on the sales lot of a dealership in San Leandro, Calif., on May 30, 2023. Justin Sullivan/Getty ImagesAn increased willingness to lend to borrowers with less than perfect credit has lifted the market share for subprime auto lending, but it has also led to a record number of auto loans in default among subprime borrowers. Subprime borrowers have FICO credit scores in the range of 300–670 and VantageScore scores of 300–600.Subprime auto loans that were 60 or more days late hit an all-time high of 6.65 percent in October, Fitch Ratings reported on Nov. 11. That’s the highest number of subprime auto-loan delinquencies since the global credit ratings agency began tracking that data set in September 1993.
Subprime Borrowers Default on Auto Loans in Record Numbers: Report
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