Auto Delinquencies Remain Highest in Southeast

Auto-loan delinquency rates continue to show significant geographic differences, with several Southeastern states posting elevated levels even after accounting for borrower credit quality.

A state-by-state analysis by Kroll Bond Rating Agency (KBRA) found that four of the five highest rates of auto loans at least 60 days delinquent during the first half of 2026 were in the Southeast.

Mississippi recorded the highest rate at 4.57%, followed by South Carolina at 4.54%, Georgia at 4.46%, New Mexico at 4.40% and Louisiana at 4.17%. By comparison, Vermont had the lowest rate at 1.50%.

KBRA found the differences persisted after controlling for credit scores and securitization composition. Louisiana performed 77 basis points worse than expected, followed by Georgia at 60 basis points worse, Mississippi at 51 and South Carolina at 37.

The findings suggest geography may be an important factor in auto-loan performance beyond traditional credit measures.

For lenders, collectors and recovery companies, concentrated delinquency could eventually translate into geographically concentrated collections, charge-offs and repossession activity.

Source: CURepossession.com