Subprime Auto Loan Delinquencies Hit Record Highs in Q1 2026

Total auto loan and lease balances reached $1.68 trillion in Q1 2026, up $15 billion from Q4 and $43 billion year-over-year, according to the New York Fed's report on consumer credit based on Equifax data. Over the five years from 2020-2024, balances surged 23% despite lower vehicle sales, driven by price explosions in 2021-2022. The auto-loan-to-disposable-income ratio dipped to 7.17%, the lowest since 2014 except for Q1 2021 when stimulus payments distorted income. Subprime auto loans packaged into Asset-Backed Securities (ABS) saw a record 60-day-plus delinquency rate of 6.90% in January 2026, up 34 basis points year-over-year, per Fitch Ratings. The rate edged to 6.80% in February. Prime auto loan delinquencies remained low at 0.42%. Overall 60-day-plus delinquency for all auto loans was 1.49% in March (Equifax). Subprime loans account for only about 15% of the $1.68 trillion total (Experian). Several subprime-specialized dealer-lender chains collapsed, including Tricolor amid fraud allegations. America's Car Mart (CRMT) shares fell 93% from their May 2021 high to around $11, a new low since the 2008-2009 crash.