A WalletHub study analyzed user data on consumer delinquency rates across all 50 states, and found it is increasing the most in Delaware, as its residents were delinquent on 8.8% more auto loans in Q4 2024 than they were during Q3 2024.
Delaware also has one of the highest auto loan delinquency rates overall, with around 21.1% of borrowers behind on their payments.
Despite the increase in delinquency, Delaware is seeing a reduction in auto loan debt, as the state was among the 26 that saw a decrease. This trend could help lower future delinquency rates.
Falling behind on debt payments can have serious long-term consequences, including damaging credit scores and substantial financial costs, WalletHub said. When it comes to auto loan debt, the stakes are even higher -- if payments are overdue for too long, the vehicle could be repossessed.
The top 10 states, ranked by increase in delinquent auto loans between Q3 2024 and Q4 2024, were:
1. Delaware (8.8% increase)
2. Kansas (7.89%)
3. New Hampshire (7.41%)
4. Montana (7.36%)
5. Oklahoma (7.21%)
6. Colorado (6.92%)
7. Washington (6.86%)
8. Alabama (6.82%)
9. Massachusetts (6.75%)
10. Arizona (6.46%)
On the other hand, the three states with the lowest increase in auto loan delinquencies between those same quarters were Wyoming (2.15%), New Jersey (2.06%) and Arkansas (2.02%).
“When you are delinquent on auto loan debt, try to get your account current as soon as possible to minimize the consequences,” said John Kiernan, WalletHub editor. “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.”
