Car ownership increasingly unaffordable for many Hoosiers According to Study

Written from press release

Indianapolis, Indiana – June 24, 2024

  • Indiana has the fifth highest percentage of auto debt balances unpaid for 90 days or more at 5.29%, 35% above the national average.
  • Consumer law experts outline consumer rights during a car repossession.

A new study has revealed that Indiana has the fifth highest percentage of auto loan balances delinquent for 90 days or more.

Wrongful Repossession Attorneys 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 90 days or more. A loan becomes delinquent once a borrower misses a payment.

5. Indiana

Indiana rose two places from seventh in 2022 to fifth in 2023. Auto loan balances in 90 days of delinquency or more increased from 4.72% in 2022 to 5.29% in 2023, 26% above the national average.

The study also found that the percentage of auto loan balances with at least 90 days of delinquency is increasing nationwide. Between Q4 2022 and Q4 2023, the percentage of auto loan balances delinquent for 90 days or more in America increased from 3.81% to 4.2%, and every state saw an increase in the percentage of delinquent auto loan balances.

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

“When an auto loan has 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 90 days or more of delinquency will likely mean more repossessions.

“Mississippi had the highest percentage of auto loan balances with 90 days or more of delinquency in both 2022 and 2023, whereas Utah had the lowest percentage in both 2022 and 2023.

“Auto loan delinquency is still rising across America, with every state showing some increase in delinquency in 2023, likely meaning repossessions will increase in kind.

“Higher numbers of repossessions bring the risk of higher numbers of wrongful repossessions with it. 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.”

Table showing the percentage of auto loan balances delinquent for 90 days or more in Q4 2022 and Q4 2023 for the states with the highest 2023 figures and the US overall. The table is ranked by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest. The table also shows a comparison of 2023’s figures to 2022’s, and comparisons between each state and the US overall for the percentage point change in delinquent auto loan balances from 2022 to 2023.

Rank % of auto loan balances 90+ days delinquent in Q4 2023StatePercent of auto debt balance 90+ days delinquent in Q4 2023Difference to Q4 2023 US OverallPercent of auto debt balance 90+ days delinquent in Q4 2022Percentage point increase of 90+ day delinquent auto loan balances from 2022 to 2023Percent difference in state increase to US overall increase from 2022 to 2023
1.Mississippi6.77+61%6.10.67+72%
2.Alabama6.05+44%5.580.48+21%
3.Georgia5.71+36%4.960.76+93%
4.Louisiana5.69+35%5.440.24-39%
5.Indiana5.29+26%4.720.57+45%
6.Hawaii5.24+25%2.882.36+502%
7.Michigan5.24+25%4.830.41+5%
8.Delaware5.2+24%4.480.72+83%
9.South Carolina5.2+24%4.650.55+39%
10.North Carolina5.14+22%4.540.60+53%
 US Overall4.2 3.810.39 

Table showing the comparison of rankings for the percentage of auto loan balances delinquent for 90 days or more between 2022 and 2023 for the 10 states with the highest 2023 figures and the US overall. The table is ordered by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest.

Rank % of auto loan balances 90+ days delinquent in Q4 2023StatePercent of auto debt balance 90+ days delinquent in Q4 2023Percent of auto debt balance 90+ days delinquent in Q4 2022Rank % of auto loan balances 90+ days delinquent in Q4 2022Change in rank for % of auto loan balances 90+ days delinquent from Q4 2022 to Q4 2023Rank highest change in percent of 90+ day delinquent auto loan balances from 2022 to 2023
1.Mississippi6.776.1104
2.Alabama6.055.582012
3.Georgia5.714.964+12
4.Louisiana5.695.443-143
5.Indiana5.294.727+26
6.Hawaii5.242.8831+251
7.Michigan5.244.836-121
8.Delaware5.24.4810+23
9.South Carolina5.24.658-17
10.North Carolina5.144.549-15
 US Overall4.23.81   

ENDS

If you use these insights, please provide a linked credit to https://forconsumers.com/ which commissioned the data. A linked credit allows us to keep supplying you with future content that you may find useful. 

Source:

State Level Household Debt Statistics 2003-2023, Federal Reserve Bank of New York, February, 2024.

Federal Reserve Bank of New York Databank Link

Q4 State-Level Statistics 2003-2023 (Annual) Direct Link to Data

Source for data in reports: New York Fed Consumer Credit Panel/Equifax

Methodology:

Thompson Consumer Law Group wanted to find which states had the highest and lowest percentage of auto loan balances that were delinquent for 90 days or more. This data was obtained from the Federal Reserve Bank of New York’s State Level Household Debt Statistics 2003-2023.

This data was used to find the percentage of auto loan balances delinquent for 90 days or more for Q4 2022, Q4 2023, the percentage point increase from 2022 to 2023 in auto loan delinquency, and the change in each state’s ranking from 2022 to 2023. Each state’s 2023 delinquency figures were compared to the US overall to provide further context.

States were primarily ranked by 2023’s auto loan delinquency figures, with other rankings found to further compare the states.

Data is correct as of March 28, 2024.

Additional Tables:

Table showing the percentage of auto loan balances delinquent for 90 days or more in Q4 2022 and Q4 2023 for each state and the US overall. The table is ranked by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest. The table also shows a comparison of 2023’s figures to 2022’s, and comparisons between each state and the US overall for the percentage point change in delinquent auto loan balances from 2022 to 2023.

Rank % of auto loan balances 90+ days delinquent in Q4 2023StatePercent of auto debt balance 90+ days delinquent in Q4 2023Difference to Q4 2023 US OverallPercent of auto debt balance 90+ days delinquent in Q4 2022Percentage point increase of 90+ day delinquent auto loan balances from 2022 to 2023Percent difference in state increase to US overall increase from 2022 to 2023
1.Mississippi6.77+61%6.10.67+72%
2.Alabama6.05+44%5.580.48+21%
3.Georgia5.71+36%4.960.76+93%
4.Louisiana5.69+35%5.440.24-39%
5.Indiana5.29+26%4.720.57+45%
6.Hawaii5.24+25%2.882.36+502%
7.Michigan5.24+25%4.830.41+5%
8.Delaware5.2+24%4.480.72+83%
9.South Carolina5.2+24%4.650.55+39%
10.North Carolina5.14+22%4.540.6+53%
11.New Mexico5.11+22%4.830.28-28%
12.Arkansas4.82+15%4.380.44+13%
13.Tennessee4.82+15%4.440.38-2%
14.Nevada4.73+13%4.320.4+3%
15.Texas4.72+12%4.470.25-37%
16.Maryland4.71+12%4.250.46+17%
17.Missouri4.67+11%4.160.51+29%
18.Florida4.47+7%4.230.24-38%
19.Ohio4.47+6%4.040.42+8%
20.Oklahoma4.46+6%4.020.44+11%
21.Illinois4.33+3%3.860.47+18%
22.Kentucky4.3+2%4.010.29-25%
23.Arizona4.16-1%3.730.43+9%
24.West Virginia4.04-4%3.70.34-14%
25.Pennsylvania3.84-9%3.350.49+24%
26.Virginia3.72-11%3.340.37-5%
27.California3.69-12%3.350.34-13%
28.New York3.55-16%3.160.38-3%
29.New Jersey3.31-21%2.960.35-11%
30.Colorado3.21-24%2.820.39-1%
31.Wyoming3.18-24%2.930.24-38%
32.Kansas3.17-24%2.90.27-32%
33.Montana3.05-27%2.870.17-56%
34.Wisconsin3.02-28%2.520.49+26%
35.South Dakota2.97-29%2.540.44+11%
36.Oregon2.77-34%2.240.53+36%
37.Iowa2.77-34%2.570.19-51%
38.Connecticut2.7-36%2.370.34-14%
39.Idaho2.59-38%2.260.33-16%
40.Vermont2.56-39%2.180.38-3%
41.Washington2.5-40%2.040.47+19%
42.Rhode Island2.45-42%2.090.36-9%
43.Nebraska2.42-42%2.050.37-5%
44.Maine2.42-42%2.390.03-93%
45.Minnesota2.4-43%2.060.34-14%
46.North Dakota2.32-45%2.110.21-48%
47.Massachusetts2.2-48%1.860.34-14%
48.New Hampshire2.1-50%1.890.21-46%
49.Alaska2.09-50%2.050.04-90%
50.Utah1.89-55%1.730.16-58%
 US Overall4.2 3.810.39 

Table showing the comparison of rankings for the percentage of auto loan balances delinquent for 90 days or more between 2022 and 2023 for each state and the US overall. The table is ordered by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest.

Rank % of auto loan balances 90+ days delinquent in Q4 2023StatePercent of auto debt balance 90+ days delinquent in Q4 2023Percent of auto debt balance 90+ days delinquent in Q4 2022Rank % of auto loan balances 90+ days delinquent in Q4 2022Change in rank for % of auto loan balances 90+ days delinquent from Q4 2022 to Q4 2023Rank change in percent of 90+ day delinquent auto loan balances from 2022 to 2023
1.Mississippi6.776.1104
2.Alabama6.055.582012
3.Georgia5.714.964+12
4.Louisiana5.695.443-143
5.Indiana5.294.727+26
6.Hawaii5.242.8831+251
7.Michigan5.244.836-121
8.Delaware5.24.4810+23
9.South Carolina5.24.658-17
10.North Carolina5.144.549-15
11.New Mexico5.114.835-638
12.Arkansas4.824.3813+116
13.Tennessee4.824.4412-124
14.Nevada4.734.3214022
15.Texas4.724.4711-440
16.Maryland4.714.2515-115
17.Missouri4.674.161709
18.Florida4.474.2316-241
19.Ohio4.474.0418-120
20.Oklahoma4.464.0219-117
21.Illinois4.333.8621014
22.Kentucky4.34.0120-237
23.Arizona4.163.7322-119
24.West Virginia4.043.723-132
25.Pennsylvania3.843.3524-111
26.Virginia3.723.3426028
27.California3.693.3525-231
28.New York3.553.1627-126
29.New Jersey3.312.9628-130
30.Colorado3.212.8233+323
31.Wyoming3.182.9329-242
32.Kansas3.172.930-239
33.Montana3.052.8732-147
34.Wisconsin3.022.5236+210
35.South Dakota2.972.5435018
36.Oregon2.772.2440+48
37.Iowa2.772.5734-346
38.Connecticut2.72.3738035
39.Idaho2.592.2639036
40.Vermont2.562.1841+125
41.Washington2.52.0447+613
42.Rhode Island2.452.0943+129
43.Nebraska2.422.0546+327
44.Maine2.422.3937-750
45.Minnesota2.42.0644-134
46.North Dakota2.322.1142-445
47.Massachusetts2.21.8649+233
48.New Hampshire2.11.8948044
49.Alaska2.092.0545-449
50.Utah1.891.7350048
 US Overall4.23.81   

All the best,
Michael Speed

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