Zoomers Are Way Behind on Car Payments

Young people are broke. While it may seem like an old trope at this point, there are also data to prove this. Many are so broke that they’ve fallen behind on their car payments, according to a study done by car insurance app Jerry, which shows that Gen Z and Millenials fell behind on $20 billion in car loans in 2022.

Everything associated with car ownership is getting more expensive. From the vehicles themselves to rising insurance rates. Inflation hasn’t made things any easier. Because of these factors, the car-buying frenzy during the pandemic reared its head in 2022. Serious auto loan delinquencies — which are defined as having a loan that’s 90 days or more late — piled up to the tune of some $20 billion then. Broken down by generation it gets worse.

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At the end of 2022, 90-day delinquencies for people aged 18-29 hit a five-year high; it was slightly worse for millennials aged 30-39 whose delinquencies hit their highest level since 2019. What’s even worse is the debt has piled on at its fastest level in over 20 years. The total dollar value of auto loans taken out by Gen Z rose $50 billion in ‘22; for millennials, it rose $80 billion.