Subprime Debacle Traps Even Very Credit-Worthy

With the economy sputtering and homeowners facing higher mortgage payments, many consumers are struggling to keep up with their car loans, too.

Auto and bank executives say delinquencies and defaults are creeping higher because of worsening economic conditions, rising unemployment and higher costs - including gas and food prices.

Although delinquencies - defined as payments that are more than 30 days late - haven't risen to the alarming rates roiling the U.S. housing markets, they have increased enough to prompt lenders to tighten their standards.

That's bad news for automakers. If banks and other lenders turn away prospective car buyers with weak credit scores, that could make a difficult year for automakers even harder, particularly for Detroit's Big Three.

"I'd think your Chevys and Fords and Chryslers - those are the brands likely to get hurt," said Bradley Rubin, an analyst at BNP Paribas in New York. read more