New data shows non-payment on auto loans is on the rise

Georgia has the fourth highest percentage of delinquent auto loans in America

• Mississippi has the highest percentage of its auto debt balance in delinquency of more than 90 days at 6.1%, 60% above the national average of 3.81%.
• Georgia is fourth, with 4.96% of auto loan balances in more than 90 days of delinquency.
• Alabama is second, with 5.58% of auto loan balances in more than 90 days of delinquency, and Louisiana is third, with 5.44%.
• Utah has the lowest percentage of auto loan balance in delinquency of more than 90 days at 1.73%, 55% below the national average.

A new study has revealed that Georgia has the fourth highest percentage of auto loan balances with more than 90 days of delinquency in America.

Wrongful Repossession Attorneys Thompson Consumer Law Group analyzed auto loan data from the Federal Reserve Bank of New York to see which states had the highest percentage of its auto loan balance that have been delinquent for more than 90 days. A loan becomes delinquent once a borrower misses a payment.

The study also found that the percentage of auto loan balances with more than 90 days of delinquency is increasing. Between Q4 2022 and Q4 2023, the percentage of auto loan balances that are more than 90 days delinquent in America increased from 3.73% to 4.17%

1. Mississippi

Mississippi has the highest percentage of its auto debt balance in more than 90 days of delinquency at 6.1%. This is 60% above the national average of 3.81% of auto debt balances being in delinquency of more than 90 days.

2. Alabama

Alabama has the second-highest percentage of its auto debt balance in delinquency of more than 90 days at 5.58%, 47% above the national average.

3. Louisiana

Louisiana is third, with 5.44% of its auto debt balance being in delinquency for over 90 days. This is 43% above the national average.

4. Georgia

In fourth is Georgia, with 4.96% of its auto debt balance being more than 90 days delinquent, 30% above the national average.

5. New Mexico

With 4.83% of its auto debt balance in more than 90 days of delinquency, New Mexico is fifth. The state’s percentage of auto loan balances greater than 90 days delinquent is 27% above the national average of 3.81%.

6. Michigan

Michigan has the sixth-highest percentage of auto loan balances that are more than 90 days delinquent at 4.83%, 27% above the national average.

7. Indiana

Indiana is seventh, with 4.72% of its auto loan balance delinquent for over 90 days. This is 24% above the national average of 3.81% of auto loan balances being in delinquency of more than 90 days.

8. South Carolina

With 4.65% of auto loan balances being in delinquency of over 90 days, South Carolina is eighth. This is 22% more than the national average.

9. North Carolina

North Carolina is ninth, with 4.54% of its auto loan balance being in delinquency for more than 90 days, 19% above the national average.

10. Delaware

Rounding out the top 10 is Delaware, with 4.48% of its auto loan balance being greater than 90 days delinquent, 18% more than the national average.

Utah had the lowest percentage of auto loans with more than 90 days of delinquency at only 1.73%, 55% below the national average of 3.81%.

Russell S. Thompson, Managing Partner at Thompson Consumer Law Group, said:

“When an auto loan has more than 90 days of non-payment, that is usually when lenders start to attempt to repossess a vehicle, so an increase of auto loan balances with more than 90 days delinquency will likely mean more repossessions.

“Mississippi had the highest percentage of auto loan balances with more than 90 days of delinquency, and auto loan delinquency is rising across America, which will likely mean more repossessions.

“With higher numbers of repossessions brings the risk of higher numbers of wrongful repossessions. There are two main types of wrongful repossession: Breach of Peace repossessions and No Right repossessions.

“A Breach of Peace repossession happens when repossession agents employ aggressive or unlawful tactics during the repossession. Some examples of what may count for this are using physical force, intimidation, threats, or trespassing on private property. During a repossession, consumers have the right to be free from harm and coercion, and these acts violate these rights.

“A No Right repossession happens when lenders repossess a vehicle they don’t have the right to repossess. Some examples of this may be taking the wrong vehicle, taking a vehicle despite the borrower not being delinquent, or the lender lacking the proper documentation to allow a repossession.

“Repossessions can become wrongful due to many other reasons at many points during the repossession process, and the law varies from place to place. It may be prudent for a consumer to enlist legal help to give them the best chance of winning their case, as a consumer may seek financial compensation if a repossession is wrongful.”