Here’s a summary of the key points from the article “Auto loan delinquencies are soaring, with consumers hit by high car prices”:

📈 What’s happening

• Delinquencies on auto loans (i.e., borrowers falling behind) have climbed more than 50% since 2010. (CBSNews)
• The increase is broad-based: it’s not just subprime borrowers; many consumers across income levels are seeing difficulty.
• The number of outstanding auto loans has grown; in one recent report, total auto-loan balances reached $1.66 trillion. (CNBC)

🔍 Why it’s happening

• Vehicle purchase prices are very high: new cars cost more today, so loan amounts are larger.
• Interest rates and borrowing costs have gone up (so car loans cost more in terms of monthly payment).
• Expenses beyond the car are increasing (maintenance, insurance, etc.), putting added strain on consumers.
• Some borrowers are underwater (owing more on their car loan than the vehicle’s worth), which increases the risk of default.

✅ Why it matters

• Rising delinquencies in auto loans could signal financial stress in the consumer sector—car payments are often among the largest monthly obligations for many households.
• Because auto loans are so widespread, troubles in this sector could have wider ripple effects on lenders, car finance companies, and potentially the broader economy.

🧭 What consumers should keep in mind

• Be cautious about taking on a high car loan amount relative to your income and other debts.
• When buying a vehicle, consider the full cost: not just the sticker price, but also the interest rate, loan term (how many months), insurance, maintenance, etc.
• For existing car loans: if you find yourself struggling, reach out early to your lender—many offer hardship or modified payment plans.