Car Payment Crisis in Ohio: Subprime Loan Statistics

For Ohio residents, a concerning trend has emerged regarding automobile loan payments. It has been observed that Americans, including those across the Buckeye State, are experiencing difficulties in maintaining their car payment schedules, with delinquency rates reaching levels unseen in over three decades.

Specifically, data provided by Fitch Ratings indicates that 6.56 percent of subprime auto borrowers were at least 60 days past due on their loans in January. This marks the highest such figure since the agency began its data collection in 1994, suggesting a significant financial burden placed upon many Ohioans. The financial strain many feel within the state is highlighted, as escalating living costs and elevated interest rates make it increasingly challenging to manage regular expenses.

Furthermore, according to The Hill, a report from the Federal Reserve Bank of New York has also documented a rise in borrowers falling behind on their vehicle payments. In the fourth quarter of 2024, the proportion of auto loans transitioning into serious delinquency—90 days or more past due rose to 3 percent, a level not witnessed since 2010. Researchers at the New York Fed have noted that “Higher car prices combined with higher interest rates have driven monthly payments upward and have put pressure on consumers across the income and credit score spectrum.” Many families throughout Ohio feel this pressure.

The cost of acquiring a new vehicle has substantially increased since the pandemic’s onset. From approximately $38,000 in January 2020, the average price has surged to over $48,500 in January 2025, according to data from Cox Automotive. Adding to this financial burden are the elevated interest rates, which have driven up financing costs. The average monthly payment for a new car loan was $755 in January, a figure that, while down from the peak of $795 in December 2022, remains significantly higher than the $566 average recorded in 2019.

Additionally, potential future increases in car prices due to tariffs have been a cause of concern. It has been suggested that such tariffs could add as much as $12,000 to the cost of a vehicle.

While those with higher credit scores, often referred to as “prime” borrowers, are experiencing slightly less difficulty, they are not entirely immune. In January, 0.39 percent of prime borrowers were at least 60 days past due on their car loans, up from 0.35 percent a year ago. Fitch defines subprime auto borrowers as those with credit scores of 640 or less.