younger americans are struggling with car loans according to the us federal reserve a new report from the new york fed shows that more americans under 30 are behind on their car payments than at any point since the 200709 recession nearly 5 of borrowers under 30 transitioned into serious delinquency last quarter meaning they haven’t made a payment in at least 90 days across all ages 26 of buyers are 90 days or more overdue prices borrowing costs have gone up several factors have combined to push monthly car payments near record highs new car buyers in april signed up for an average monthly payment of 766 the average monthly payment peaked in december reaching 792 new car prices soared over the last two years as pandemicrelated factory shutdowns and supply chain problems left automakers unable to build as many new cars as they’d like they focused on building vehicles with the highest profit margins—meaning more cars with prices over 60000 entered the market and cars with prices under 25000 almost disappeared read are we witnessing the demise of the affordable car automobile makers have all but abandoned the budget market in an attempt to rein in inflation the fed then raised interest rates 10 consecutive times that has driven borrowing costs higher prices have begun to come down in recent months but borrowing costs remain high auto affordability is slowly improving—new cars grew easier to afford in april but at the current pace it could be years before prices return to a normal prepandemic relationship to income the used car market provides some relief but prices remain near historic highs that may be the case for years as pandemicera manufacturing levels will restrict the number of cars entering the used car market related why getting a car loan is becoming more complicated those conditions are hardest on earlycareer earners who haven’t accumulated the savings necessary to endure market shocks younger americans are also more likely to carry student loan debt a third of americans under 34 have student loans the fed says the biden administration is expected to end a pause in student loan payments this summer increasing expenses for many of the drivers already behind on payments