A significant group of Americans are falling behind on their car payments

In an aerial view, a customer walks through a Carmax dealership. Brandon Bell/Getty Images

A key group of American borrowers is falling significantly behind on their car loans. It’s yet another sign that the US economy is forming some serious cracks, leaving the most vulnerable in financial distress.

The percentage of subprime borrowers – those with credit scores below 670 – who are at least 60 days late on their car loans has doubled since 2021 to 6.43%, according to Fitch Ratings. That’s worse than during the past three recessions – during the Covid pandemic, the Great Recession or the dot-com bust.

America’s current subprime delinquency rate is at the second-highest level since the early 1990s. The only time it was higher: this past January. Cars are being repossessed at the highes