VantageScore® Analysis Reveals Increase in Auto Loan Delinquencies Across All Credit Tiers

• Late Payments on Auto Loans Are Also Up Across All Income Groups
• Auto Loan Delinquencies Increased Over 50% Since 2010
• Near Prime and Prime Borrowers Saw Late Payments Increase Fastest

SAN FRANCISCO, Nov. 19, 2025 /PRNewswire/ -- Auto Loans have now evolved from being one of the least risky consumer credit products to one of the loan types most prone to delinquencies, according to a report from VantageScore. An increased number of consumers are struggling with monthly Auto Loan payments, which have risen due to rising car prices, higher financing costs and increased interest rates. These factors are compounded by rapidly escalating auto insurance and repair costs, reducing consumer visibility into monthly payments and exacerbating delinquencies. Further complicating delinquency patterns, a historically high number of consumers owe more on their car loans than their car's market value.

"Auto loans have not followed the trends of other credit products as delinquencies have been persistently trending up across all credit tiers and income groups over the past 15 years," said Dr. Rikard Bandebo, Chief Strategy Officer and Chief Economist at VantageScore. "Even after the industry tightened lending criteria three years ago, delinquencies have continued to rise."

VantageScore's research found that the increase in delinquencies is not attributable to any specific group of consumers, as delinquencies were higher across credit risk tiers and income groups. While many lenders adjusted their criteria in response to growing losses in 2022 and 2023, delinquencies have continued to rise rather than decline.

Key conclusions from the VantageScore study include:

AUTO LOANS ARE NOW ONE OF THE RISKIEST COMMERCIAL CREDIT PRODUCTS: While all other credit products have seen delinquencies decline since 2010, Auto Loan delinquencies have risen by over 50%. In the aftermath of the Great Recession, Auto Loans were the least risky credit product in 2010. In 2025, they have earned the title of being one of the riskiest. Only student loans are riskier. Auto Loan delinquencies are growing across credit tiers and income groups. 

AFFORDABILITY IS A KEY DRIVER OF LOSSES: The average Auto Loan balance has grown 57% since 2010, outpacing all other credit products. Additionally, the analysis shows that increased balances on Personal Loans are highly correlated with Auto Loan delinquencies. This is another sign that consumers are struggling to and potentially falling into a debt spiral as they rely on loans to help them cover their cashflow shortfall, as their monthly expenses have outpaced their income. 

ADJUSTMENTS TO LENDING CRITERIA HAVE NOT LOWERED DELINQUENCIES: Many lenders changed their standards in response to increasing losses in 2022 and 2023, yet delinquencies have not decreased but continued to climb. The changes have reduced delinquencies among VantageScore Subprime borrowers, but losses in Near Prime and Prime have climbed rapidly, more than offsetting the impact on Subprime loss reductions.

VantageScore credit scores are expanding usage in the capital markets, serving as a trusted benchmark in asset-backed securitizations and delivering investors enhanced transparency and predictive performance. To learn more, visit vantagescore.com/what-we-do/capital-markets. 

To download a copy of the full report, visit the VantageScore website.

About VantageScore® 

VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive and inclusive credit score models. In 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to offer consumer credit products or gain deeper insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending.

VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.

SOURCE VantageScore