To identify the states where auto loan delinquencies are rising the most, and therefore where people’s vehicles are most at risk of being repossessed, WalletHub compared all 50 states using its proprietary user data on delinquency rates. of consumers between the third quarter of 2023 and the fourth quarter of 2023.
“Falling behind on debt payments can cause long-term damage to your credit score and cost you a lot of money. You will rack up costly late fees even as your interest continues to rise,” the WalletHub report says.
The personal finance site notes that when it comes to auto loan debt, late payment also has another dire consequence, as after a long enough period of time, your car may even be repossessed.
“When you are behind on an auto loan debt, try to bring your account up to date as soon as possible to minimize the consequences. If you pay less than 30 days late, your late payment will not be reported to the credit bureaus, although you may still owe a late payment fee,” says John Kiernan, editor of WalletHub.
“If you are more than 30 days late, talk to your lender so they don’t start the process of repossessing your car while you decide how to pay. Ask if your lender has a hardship plan or try strategies like cutting other expenses or consolidating debt,” Kiernan added.
States with the highest delinquencies
State (1): Washington
Average % of non-performing loans in Q-IV-2023: 10.67%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 12.89%
State (2): Alaska
Average % of non-performing loans in Q-IV-2023: 12.62%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 12.50%
State (3): Oregon
Average % of non-performing loans in Q-IV-2023: 10.27%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.70%
State (4): Georgia
Average % of non-performing loans in Q-IV-2023: 17.35%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.62%
State (5): Rhode Island
Average % of non-performing loans in Q-IV-2023: 11.38%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.41%
State (6): Oklahoma
Average % of non-performing loans in Q-IV-2023: 12.80%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.21%
State (7): Delaware
Average % of non-performing loans in Q-IV-2023: 18.09%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.21%
State (8): Utah
Average % of non-performing loans in Q-IV-2023: 9.01%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 11.16%
State (9): West Virginia
Average % of non-performing loans in Q-IV-2023: 17.11%
Change in number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 10.75%
State (10): North Carolina
Average % of non-performing loans in Q-IV-2023: 17.93%
Change in the number of delinquent auto loans (Q-IV-2023 vs Q-III-2023): 10.29%
To view the full report and its methodology, go here.
The Washington case
Auto loan delinquencies are rising the most in Washington, as state residents were delinquent on 12.9% more auto loans in the fourth quarter of 2023 than during the third quarter of 2023.
The good news is that despite this large increase, Washington still has one of the lowest auto loan delinquency rates overall, with about 10.7% of borrowers behind on their payments.
People in Washington are also increasing their auto loan debt at a much slower rate than people in most other states, so that is expected to minimize future increases in delinquencies.
Keep reading:
· Americans willing to go into debt to take summer vacations
· US states with the most collection accounts: WalletHub
· The US cities that are most delinquent in paying their debts