More people are missing car payments in another ominous sign for the economy

A record number of subprime borrowers are behind on their auto loan payments by 60 days or more, according to figures from Fitch Ratings reported by Bloomberg.

The rate hit 6.11% in September – the highest since records began in 1994, and was up from the 5.93% recorded at the start of the year.

Analysts predict that auto loan delinquencies will continue to rise into 2024 and peak at about 10% before they start to fall, per CNN.

The high rates of delinquencies indicate that many lower-earning workers in particularly are struggling amid ongoing high inflation, a rough jobs market, and the resumption of federal student loan payments following a pandemic-era freeze.

High interest rates are also having an impact, with many turning to borrowing to cope. In the second quarter of this financial year, credit card debt surpassed $1 trillion for the first time in the NY Fed survey's history.