The subprime auto market looks to be in poor health as the number of borrowers with outstanding loans that are more than 60 days overdue continues increasing. While the number has a tendency to rise and fall between seasons, the general trend toward indebtedness has been going up since 2015, with increasingly more customers boasting lackluster credit scores becoming incapable of footing their transportation bill.
Delinquencies skyrocketed in 2020, as government lockdowns pushed many out of work and now appear to be increasing due to a recovery plan that primarily seems to be serving cooperate interests and the wealthiest socioeconomic classes. Though it should be said that middle and lower-class families had been losing ground for decades, at least according to the latest Pew Research data. Pandemic-related complications only served to accelerate the existing financial disparities on all fronts. We are now on course for poorer people to have even less money moving forward, especially in the world’s most developed countries.
I wonder why so many people are defaulting on their car loans…
Automotive insurers use more than just your driving history to set your rates, the New York Times is reporting.
Factors such as your credit score, address and marital status can increasingly affect premiums more than driving history, the story explains.
A survey of the nation’s largest insurers — Geico, State Farm, Nationwide, Liberty Mutual and Farmers — found that a hypothetical woman in her 30s paid more if she was widowed, instead of married, at four of the five firms. The premium increases ranged from 3 percent to 29 percent. Only State Farm charged the woman the same, regardless of marital status.