States With the Highest and Fastest Rising Auto Loan Delinquency
It’s no surprise that auto loan delinquency has been rising nationally. And it should surprise no one that the states with the highest rates of delinquency are in the south, but according to a study done by WalletHub, the states whose delinquency is growing the fastest are in some states that you wouldn’t have considered.
In order to identify the states where auto loan delinquency is increasing the most, and where people’s vehicles are most in danger, WalletHub compared the 50 states using its proprietary user data on consumer delinquency rates between Q3 2023 and Q4 2023.
States Where Auto Loan Delinquency Is Increasing the Most
Note: *No. 1 = Largest Increase
| Overall Rank* | State | Share of Average Number of Auto Loan Tradelines Delinquent in Q4 2023 | Change in Average Number of Auto Loan Tradelines Delinquent (Q4 2023 vs. Q3 2023) |
| 1 | Washington | 10.67% | 12.89% |
| 2 | Alaska | 12.62% | 12.50% |
| 3 | Oregon | 10.27% | 11.70% |
| 4 | Georgia | 17.35% | 11.62% |
| 5 | Rhode Island | 11.38% | 11.41% |
| 6 | Oklahoma | 12.80% | 11.21% |
| 7 | Delaware | 18.09% | 11.21% |
| 8 | Utah | 9.01% | 11.16% |
| 9 | West Virginia | 17.11% | 10.75% |
| 10 | North Carolina | 17.93% | 10.29% |
| 11 | Hawaii | 13.79% | 10.24% |
| 12 | New Mexico | 15.05% | 9.78% |
| 13 | Colorado | 11.38% | 9.57% |
| 14 | New Jersey | 15.19% | 9.39% |
| 15 | California | 11.61% | 9.34% |
| 16 | South Carolina | 17.31% | 9.34% |
| 17 | Tennessee | 15.19% | 9.19% |
| 18 | Ohio | 12.70% | 9.06% |
| 19 | Nevada | 15.04% | 9.02% |
| 20 | Kansas | 11.92% | 8.96% |
| 21 | Vermont | 12.39% | 8.89% |
| 22 | Maryland | 16.29% | 8.84% |
| 23 | Arkansas | 16.49% | 8.63% |
| 24 | Mississippi | 23.49% | 8.55% |
| 25 | Pennsylvania | 15.17% | 8.38% |
| 26 | Arizona | 13.65% | 8.15% |
| 27 | Nebraska | 12.23% | 7.96% |
| 28 | Louisiana | 21.08% | 7.96% |
| 29 | Wisconsin | 12.14% | 7.93% |
| 30 | Michigan | 17.44% | 7.93% |
| 31 | Florida | 12.36% | 7.88% |
| 32 | Texas | 15.30% | 7.85% |
| 33 | Indiana | 14.94% | 7.63% |
| 34 | South Dakota | 11.61% | 7.51% |
| 35 | Illinois | 12.88% | 7.25% |
| 36 | Kentucky | 15.05% | 7.19% |
| 37 | Virginia | 14.50% | 7.15% |
| 38 | Connecticut | 14.56% | 6.78% |
| 39 | New York | 13.09% | 6.78% |
| 40 | Idaho | 9.04% | 6.77% |
| 41 | Missouri | 13.76% | 6.72% |
| 42 | Alabama | 17.61% | 6.71% |
| 43 | Massachusetts | 11.25% | 6.55% |
| 44 | North Dakota | 11.57% | 6.45% |
| 45 | New Hampshire | 11.32% | 6.25% |
| 46 | Iowa | 8.77% | 5.97% |
| 47 | Montana | 11.16% | 5.60% |
| 48 | Minnesota | 13.34% | 3.04% |
| 49 | Maine | 12.09% | 2.30% |
| 50 | Wyoming | 11.59% | 1.48% |
In-Depth Look at the Top States Where Auto Loan Delinquency Is Increasing the Most
Washington
Auto loan delinquency is increasing the most in Washington, as the state’s residents were delinquent on 12.9% more auto loans in Q4 2023 than they were during Q3 2023.
The good news is that despite this big increase, Washington still has one of the lowest auto loan delinquency rates overall, with around 10.7% of borrowers behind on their payments.
People in Washington are also adding to their auto loan debt at a much slower rate than people in most other states, so that should hopefully minimize future increases in delinquency.
Alaska
Alaska had the second-highest increase in auto loan delinquency from Q3 2023 to Q4 2023. Residents were behind on payments for 12.5% more auto loans in the fourth quarter.
In addition, Alaskans have the highest average auto loan debt in the country, which means that interest can easily spiral out of control while people are not making payments, especially when late fees are also applied.
Things haven’t gotten out of hand yet, however. Alaska ranks toward the middle of the country when it comes to auto loan delinquency rates overall, with around 12.6% of borrowers delinquent.
Oregon
Auto loan delinquency in Oregon increased by 11.7% between Q3 2023 and Q4 2023, which ranks third nationally. However, Oregon still has a low auto loan delinquency rate overall. Around 10.3% of borrowers are behind on their payments, which beats all but three other states despite the recent increase.
People in Oregon should be cautious given the recent trend, but they probably aren’t in too much danger considering their total auto loan debt.
To determine the states most delinquent on auto loans, we analyzed WalletHub’s proprietary user data on consumer delinquency rates between Q3 2023 and Q4 2023.
Sources: Data used to create this ranking were collected as of March 27, 2024 from WalletHub database.
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States With the Highest and Fastest Rising Auto Loan Delinquency – States With the Highest and Fastest Rising Auto Loan Delinquency – States With the Highest and Fastest Rising Auto Loan Delinquency
States With the Highest and Fastest Rising Auto Loan Delinquency – Delinquency – Credit Union Collections – Credit Union Collectors – Repossess –
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