A record 7 million Americans are 90 days behind on their car payments

A record number of Americans are three months behind on their car payments, leaving economists surprised — and concerned.

The Federal Reserve Bank of New York released a new report on Tuesday that shows seven million Americans are at least 90 days late on their car payments. Most of those seven million people are 30 or younger with low credit scores. Defaults are highest among "subprime" borrowers, who have credit scores of 620 or lower and usually have interest rates between 14.5 and 20 percent on their loans.

"The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market and warrants continued monitoring and analysis of this sector," economists said in a blog post accompanying the report. Michael Taiano, senior director at Fitch Ratings, told The Washington Post that car loans are typically prioritized when it comes to making payments. "If you don't have a car, you can't get back and forth to work in a lot of areas of the country," he said. "A car is usually a higher-priority payment than a home mortgage or rent."

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