Auto Loan Delinquency Spikes Across U.S.

As financial pressure mounts nationwide, auto loan delinquencies are rising across all 50 states, with New York among the hardest hit, according to a new WalletHub study.

Between the third and fourth quarters of 2024, New York saw a 6.29% increase in delinquent auto loans, placing it 13th in the nation for fastest-rising delinquency rates. In total, 16.23% of the state’s auto loan tradelines were reported delinquent in the final quarter of the year.

The report highlights growing concerns over credit damage and vehicle repossessions as more consumers struggle to keep up with car payments. WalletHub’s analysis was based on proprietary user data, tracking the percentage change in delinquency rates state by state.

“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, WalletHub editor. Kansas and New Hampshire followed closely, with 7.9% and 7.4% increases, respectively.

In all three leading states, more than 14% of auto loan accounts were delinquent in the last quarter of 2024.

WalletHub cautioned that consumers who fall behind on car payments risk more than just late fees. “When you are delinquent on auto loan debt, try to get your account current as soon as possible to minimize the consequences,” the report advised. Borrowers more than 30 days late are especially vulnerable to credit score damage and repossession.

The report suggests proactive steps such as speaking with lenders about hardship plans, consolidating debt, or cutting other expenses to avoid further financial strain.