As auto loan delinquencies soar to historic highs, many lower-income Americans are struggling to keep up with car payments amidst rising prices and financial pressures. Reports indicate that a significant number of consumers owe more on their auto loans than their vehicles are worth, with nearly one in four new car trade-ins classified as ‘underwater’. The trend, reminiscent of the economic stresses observed before the Great Recession, raises concerns about the overall health of consumer finances and the potential ripple effects on the economy. With rising costs leading to increased defaults and repossessions, experts warn that these auto lending troubles may signal a bifurcated economic landscape, impacting American families more than ever.