More Americans are falling behind on car loans
Marketplace Morning Report
Marketplace
4.5 • 927 Ratings
🗓️ 7 March 2025
⏱️ 9 minutes
🧾️ Download transcript
Summary
This week, Fitch Ratings found that 6.5% of subprime borrowers were at least two months late on their car payments. That’s the highest level since the agency began collecting this data in 1994. Other data finds that auto loan delinquency rates increased in 2024 across all income levels. What’s behind all this? Plus, tariffs already being felt across the economy. And later, a vintage race car mechanic reflects on the sights, sounds and feelings of racing.
Transcript
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| 0:00.0 | The economy has been through a lot this week. |
| 0:06.1 | From Marketplace, I'm Sabri Beneshore in for David Brancaccio. |
| 0:09.2 | It is a week that felt like a lifetime for this economy. |
| 0:12.8 | We had a delay on new import taxes on goods from Canada, Mexico, China. |
| 0:16.1 | Then the tariffs came. |
| 0:17.5 | Then they changed. |
| 0:18.4 | Then there was a pause. |
| 0:19.8 | Today, we got jobs numbers from the Bureau of Labor |
| 0:22.2 | Statistics. The unemployment rate ticked up a tenth of a point to 4.1% in February, 151,000 jobs |
| 0:29.2 | added to the economy. Christopher Lowe is chief economist at FHN Financial in New York and is here to talk |
| 0:34.3 | about all of it. Hi, Chris. Good morning, Sabree. |
| 0:44.9 | Are any of these numbers something to be concerned about 4.1% unemployment, 151,000 jobs added. |
| 0:51.1 | You know, 4.1% unemployment rate is right in the middle of the range of the last six months, so it's not that bad, But it would have been up more, if not for the fact |
| 0:57.6 | that the labor force fell. I'd say overall lackluster employment numbers in February. |
| 1:05.8 | And of course, we cannot end this week without talking about tariffs. When is all of this, |
| 1:12.9 | well, I mean, chaos, basically, |
| 1:21.3 | going to filter into the economy and have actual consequences? It already is. Hiring plans by businesses are on hold until they have some certainty of the environment they're operating in. |
| 1:29.0 | That could take months. |
| 1:38.7 | Canada is sick of the on and off and is already retaliating. Ontario electricity, they have imposed a 25% tariff that stays in place, no matter what they do in terms of putting them on and putting them |
| 1:47.0 | off as long as the threat of tariffs remains. Christopher Lowe, chief economist at FHN Financial in New York. |
| 1:55.6 | Thank you, as always. Thank you, Sabri. More Americans with lower credit scores are falling behind on their car loans. |
| 2:04.6 | Fitch ratings this week finds that 6.5% of subprime borrowers were at least two months late on their car payments. |
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