Auto loan rejection rates reach highest since 2013 according to latest NY Fed survey

Per Reuters

A new survey by the New York Feds finds that auto loan rejection rates have reached a new high since 2013. With more application rejections, this results in more Americans struggling to get a car via an auto loan.

The survey found that auto loan rejections reached their highest in 10 years. In February, the rejection rates were at just 9.1%, but now, a few months later, that rejection rate climbed by a little over 5% to 14.2%.

This, however, was still lower than the overall rejection rate for credit applicants. The overall rejection rate grew from just 17.3% in February to 21.8% in just a few months.

Overall rejection rates have also been the highest since June 2018, a few years before the pandemic. The Feds noted that applicants with credit scores below 680 were the ones that had the highest rejection rates.

In February, it was reported that American car payments experienced the highest delay rate, even exceeding 2009 numbers.

It was recently reported that only 8% of new vehicles cost less than $30,000, which was down from 38% since pre-pandemic levels, according to CoPilot. This means that the car market is now at record-low affordability even if annual new car sales increased to 15.6 million in June.

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