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More Americans Are Falling Behind On Payments | Microsoft, Amazon, Meta, Google, Apple To Report Earnings
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we’re talking about loans, specifically the massive impact that car loans are having on households. Auto delinquencies are hitting their highest levels since 2010 as interest on loans remains high, and the cost of vehicles continues to soar. This had led the average car loan amount to jump 57% in the past 15 years, outpacing every other major loan category.
Plus, a look back at all the top stories and market activity from this past week.
Lastly, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business, click here to send us an email.
Table of Contents
INDUSTRY CHATTER
It turns out the latest indicator of household financial strain isn’t in credit cards or mortgages — it’s sitting in the driveway. Car prices haven’t gone down and interest rates have barely budged this year. To make payments fit, more buyers are stretching their auto loan terms further than ever.
A report from Edmunds' last month showed a few unsettling records as 22.4% of shoppers are using an 84-month or longer loan term to finance a new vehicle, up from 20.4% in Q1 2025 and just 17.6% a year earlier. With higher prices and longer loan terms, consumers are battling more debt, slower payoff, and rising delinquencies — even among borrowers with strong credit.
Most recently, new data from VantageScore shows delinquencies on auto loans are at their highest level since 2010. Nearly 4% of balances are now at least 30 days past due, and what’s notable is that this isn’t just a subprime issue. Prime borrowers — those who are viewed and considered financially solid — are seeing the fastest rise in delinquencies.
The shift has been building quietly for years. The average car loan amount has jumped 57% in the past 15 years, outpacing every other major loan category. And according to data from Cox Automotive, prices for average price of a new vehicle just crossed $50,000 for the first time ever. With interest rates still high, one in five new loans now carries a monthly bill of $1,000 or more.
The Takeaway
For many households, the numbers are colliding with stagnant wages and persistent inflation pressures. The result: higher credit stress, even among higher-income earners.
This isn’t just about car payments — it’s about household cash flow and how Americans are absorbing rising fixed costs. A client with a $1,000 car payment, high insurance premiums, on top of inflation pressures will likely start trimming elsewhere first — including retirement contributions or investment savings.
For younger clients, especially Millennials and Gen Z, financing a vehicle is increasingly the first (and sometimes largest) form of debt they take on. Longer loan terms and underwater vehicles can make it harder for them to build equity elsewhere.
For advisors, these trends are a reminder to look closely at non-mortgage debt when assessing overall financial health. Reviewing loan terms, exploring refinancing options, or even discussing lifestyle tradeoffs (buying used, leasing, or delaying purchases) can open up valuable conversations about financial flexibility.
Auto loans may not have been a portfolio topic in years past, but in 2025, they’re becoming an early signal of consumer strain — and an opportunity to help clients regain control before it spills into other areas of their financial lives.
WEEKLY MARKET RECAP
A cooler-than-expected inflation report is likely to give the Federal Reserve the confidence it needs to proceed with a rate cut next week, as markets now fully price in a quarter-point reduction in the federal funds rate.
Inflation rose 3% year-over-year in September, slightly up from August's 2.9% pace but below economists forecasts of 3.1%. Core inflation, which excludes food and energy, eased from 3.1% to 3%, cooling more than expected.
Wall Street cheered the data, with major indexes climbing to record highs. Markets now anticipate two additional rate cuts this year, followed by three more in 2026.
Stocks gained further after strong corporate earnings and optimism that President Donald Trump and Chinese President Xi Jinping may soon meet to discuss trade relations.
Michigan's auto giants were among the week's standout performers. General Motors (GM) and Ford (F) each posted double-digit weekly gains after delivering upbeat quarterly results and forward guidance. General Motors shares surged to record highs on Friday, capping their best week since March 2020.
The automaker's stock jumped 15% on Tuesday after reporting third-quarter revenue of $48.6 billion, topping expectations of $45 billion, and earnings per share of $2.80 – well above forecasts of $2.29. GM said it plans to introduce hands-free, eyes-off driving capabilities by 2028, starting with its Cadillac Escalade IQ electric SUV.
At the same time, the company will cut back electric vehicle production and eliminate more than 200 positions at its suburban Detroit tech center as it adjusts to changing EV demand.
Ford shares also rallied, jumping 10% on Friday — the stock's best day since 2022. The company reported third-quarter revenue of $50.5 billion, up 9.4% from a year earlier, and earnings per share of 45 cents, beating Wall Street expectations of 36 cents.
Ford said it plans to boost F-150 and Super Duty truck production by more than 50,000 units in 2026, expanding operations in Michigan and Kentucky to meet growing demand.
Not all earnings news was upbeat. Netflix (NFLX) tumbled more than 10% for the week after missing earnings expectations, hit by a $619 million tax charge in Brazil.
Energy stocks, which had sharply lagged the broader market before this week, rebounded after the Trump administration imposed new sanctions on Russian oil giants Rosneft and Lukoil in a bid to pressure Vladimir Putin toward a peace deal in the Ukraine war.
THE WEEK AHEAD
Economic Data
Monday: No meaningful reports due to government shutdown
Tuesday: Consumer confidence, S&P Case-Shiller home price index
Wednesday: Pending home sales, FOMC interest rate decision
Thursday: Fed speech (Michelle Bowman)
Friday: Baker Hughes rig count, Fed speech (Logan, Hammack, Bostic)
Earnings
Click here for the full calendar of economic data and earnings reports.
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