Auto Loan Delinquency Continues to Rise

A study by attorneys at Thompson Consumer Law Group analyzed 2022 and 2023 auto loan data from the Federal Reserve Bank of New York to see which states had the highest percentage of auto loan balances delinquent for more than 90 days. Their results showed it’s not only a problem everywhere but it’s increasing. 

Between 2022 and 2023, the percentage of auto loan balances over 90 days delinquent in America increased from 3.81% to 4.2%, and every state experienced an increase.  

The study showed these states with the highest percentage of auto loan balances delinquent: 

Mississippi: 6.77; Alabama: 6.05%; Georgia: 5.71% Louisiana: 5.69%; Indiana: 5.29%; Hawaii: 5.24%; Michigan: 5.24%; Delaware; 5.2%; South Carolina: 5.2%; North Carolina; 5.14%. 

A lending officer at Michigan First Credit Union says he sees delinquent payments steadily climbing.  

Jeff Fitrzyk, their chief lending officer, said, “We’re also seeing an increase in repossessions, both voluntary and involuntary,” he added, noting people are dealing with inflationary pressures that demand their immediate attention and one of the things that often falls behind are auto loans, which seem to be returning to their pre-COVID levels. 

Source: www.macombdaily.com