Auto loan delinquency rates rose across all 50 states between Q3 2024 and Q4 2024, according to a report from the personal finance website WalletHub.
The report highlights where the risk of credit score damage and vehicle repossession is increasing the most. To determine which states are experiencing the biggest increases in auto loan delinquency, WalletHub analyzed proprietary user data on consumer delinquency rates across all 50 states between Q3 2024 and Q4 2024.
“Auto loan delinquency is increasing the most in Delaware, as the state’s residents were delinquent on 8.8% more auto loans in Q4 2024 than they were during Q3 2024,” said John Kiernan, editor at WalletHub. “Kansas came in second place, with a 7.9% increase, while New Hampshire had the third-biggest increase, at 7.4%. In addition, residents in each of the top three states were delinquent on more than 14% of their total auto loans in Q4 2024.”
The 10 states increasing the most and least include:
|
Increasing the Most |
Increasing the Least |
|
1. Delaware |
41. Alaska |
|
2. Kansas |
42. Nebraska |
|
3. New Hampshire |
43. Maryland |
|
4. Montana |
44. Vermont |
|
5. Oklahoma |
45. Maine |
|
6. Colorado |
46. Hawaii |
|
7. Washington |
47. Utah |
|
8. Alabama |
48. Wyoming |
|
9. Massachusetts |
49. New Jersey |
|
10. Arizona |
50. Arkansas |
For anyone who is delinquent on auto loan debt, Kiernan recommends trying to get the account current as soon as possible to minimize the consequences.
“If you pay fewer than 30 days late, your delinquency won’t be reported to the credit bureaus, though you’ll still likely owe a late fee,” he said. “If you’re more than 30 days late, talk with your lender so they don’t start the process of repossessing your car while you figure out how to pay. Ask if your lender has a hardship plan,or try strategies like cutting other expenses or consolidating debt.”
Data used to create this ranking was collected from WalletHub database as of March 20. For the full report and to see where your state ranks, click here.
