A record 19% of new car buyers in the second quarter of 2025 took on monthly payments of $1,000 or more, up from under 7% three years earlier, according to Edmunds. The average new car payment reached $767 in the fourth quarter of 2025, with average loan amounts of $43,582 over 68.9 months, per Experian. Subprime auto loan delinquencies hit a 32-year high of 6.9% in January 2026, while total outstanding auto debt climbed to $1.667 trillion. Real average hourly earnings slipped to $11.24 in May 2026, and the personal savings rate fell to 3.7%, squeezing household budgets. The University of Michigan consumer sentiment index dropped to 49.8 in April 2026, signaling growing financial strain.
Experian PLCRising auto loan delinquencies and consumer financial strain may reduce demand for Experian's credit reporting services from auto lenders.