Reports in the US say that a record seven million Americans are three months behind on their car finance payments, a development viewed as a red flag for the US economy and despite current strong fundamentals such as low unemployment.
The Federal Reserve Bank of New York reported the development this week.
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"The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labour market," economists at the New York Fed wrote in a blog post, according to the LA Times.
The LA Times report noted that people who are three months or more behind on their car payments often lose their vehicle.
It also said that most of the people behind on their car finance repayments have low credit scores and are under age 30, suggesting young people are struggling to simultaneously pay their car loans and their student loans.
After the 2008-09 financial crisis and sub-prime defaults, restrictions were placed on mortgages in the US. However, there are far fewer restrictions on auto loans, analysts say.
