On the Dash:
- Auto loan balances newly entering serious delinquency held at 2.97% in Q1 2026.
- Borrowers aged 18 to 29 posted the highest serious delinquency rates across all loan types.
- Lenders originated $182 billion in new auto loans, signaling continued market activity.
Auto loan delinquency held steady at nearly 3%, but the rate at which borrowers are falling behind is slowing. That’s according to data the Federal Reserve Bank of New York released Thursday.
The NY Fed tracks “flow” as its key health metric. Flow measures the share of auto loan accounts falling into delinquency each quarter. When flow slows, fewer borrowers are newly missing payments. That is what the data showed in Q1.
The flow rate for early delinquency, accounts 30 or more days past due, fell to 7.72%, down from 7.99% in Q1 2025. The rate for serious delinquency, accounts 90 or more days past due, came in at 2.97%, nearly unchanged from a year ago. Borrowers are still missing payments, but the problem is not getting worse.
New auto loan originations totaled $182 billion in Q1. Auto loan balances grew by $18 billion, reaching $1.69 trillion. That shows lenders haven’t pulled back on issuing credit, despite increased financial stress.
Looking beyond auto loans, the NY Fed reports that 4.8% of all Americans with outstanding debt balances were in some stage of delinquency in Q1, essentially flat from Q4 2025. Total household debt rose slightly to $18.8 trillion, up just 0.1% from the prior quarter. Mortgage balances grew $21 billion to $13.19 trillion while credit card balances fell $25 billion to $1.25 trillion.
Younger borrowers show the most strain. Consumers in the 18 to 29 age group posted the highest serious delinquency and transition rates across auto loans, credit cards, and student loans. Younger borrowers typically have shorter credit histories and smaller savings to help cushion financial setbacks.
Nevada and Florida saw the highest delinquency and transition rates in the report. Dealers in those states could see impacts through more trade-ins with negative equity and customers who cannot qualify for financing.
The NY Fed bases its report on the Consumer Credit Panel, a nationally representative 5% sample of Equifax credit report data.
