Auto loan delinquencies are rising across the U.S., but some states are seeing a sharper increase than others — signaling deeper financial stress for drivers already burdened by high interest rates and growing vehicle costs.
WalletHub analyzed proprietary user data on consumer delinquency rates between the third and fourth quarters of 2024.
John Kiernan, an analyst for WalletHub, has some advice for those falling behind on payments, which can lead to repossession and long-term credit damage.
“Try to get your account current as soon as possible to minimize the consequences,” Kiernan said. “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. 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,” he added.
Continue reading to see where delinquency rates are rising the fastest.
