By Hank Russell
A recent study from WalletHub found that 16.4% of car owners were delinquent on their loans during the fourth quarter of 2024. Even worse, the number of those late on their payments was up 6.29% from the previous quarter.
According to WalletHub, New York has the 13th highest delinquency rate in the nation. The top three states are Delaware (21.11%), Kansas (14.61%) and New Hampshire (14.61%). They also had the top three quarterly increases at 8.77%, 7.89% and 7.41%, respectively.
Currently, the average balance on an auto loan in New York is $4,430, according to Bankrate. That is lower than the national average of $5,640. The three states with the highest loan balance are Texas ($7,810), Louisiana ($6,860) and Florida ($6,560).
“Affordability continues to pose a challenge for the used vehicle market and, in particular, for below prime consumers, who have seen a buying climate of higher interest rates, increasing lender pullback, and cross-wallet inflation,” said Satyan Merchant, the senior vice president and automotive and mortgage business leader at TransUnion. “While some brands continue to see lingering shortages, new vehicle inventories continue to recover from their pandemic-era lows.”
WalletHub editor John Kiernan suggests that those who are less than 30 days late won’t see an impact on their credit reports, but it’s probable they will still have to pay a late fee. For those who are more than 30 days, Kiernan suggested working something out with the dealer.
“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,” Kiernan said. “Ask if your lender has a hardship plan, or try strategies like cutting other expenses or consolidating debt.”