MIAMI--Auto loan delinquency rose in every state but one between the third and fourth quarters of 2025, with some of the sharpest increases showing up in markets that still have relatively low overall delinquency rates, according to a new WalletHub analysis that could add to ongoing concerns for lenders.
WalletHub said it compared all 50 states using proprietary user data on consumer delinquency rates between Q3 and Q4 2025, finding North Dakota posted the largest increase in auto loan delinquency, followed by Idaho, Hawaii, New Hampshire and New Jersey. By contrast, Montana was the only state to post a decline during the period.
North Dakota led the nation with a 10.81% quarter-over-quarter increase in the average number of delinquent auto loan tradelines, followed by Idaho (10.23%), Hawaii (9.21%), New Hampshire (9.10%) and New Jersey (8.31%). Still, WalletHub noted that some of the states seeing the fastest acceleration do not necessarily have the highest overall delinquency rates, underscoring that the trend is as much about deterioration speed as current credit quality.
For example, despite posting the largest increase, North Dakota’s share of average auto loan tradelines delinquent in Q4 2025 stood at 12.62%, while Idaho was at 11.96%. Hawaii, which ranked third in acceleration, posted a 14.20% delinquency share. In contrast, some states with slower quarter-over-quarter increases still carried much higher absolute delinquency burdens, including Mississippi (24.01%), Louisiana (22.65%) and North Carolina (20.21%).
Among larger credit-union-heavy states, Texas ranked 33rd in delinquency acceleration with a 4.83% increase and a 17.43% delinquency share, while Florida ranked 39th with a 4.35% increase and 13.95% delinquent tradelines. California ranked 20th with a 6.05% increase, New York 21st at 5.76%, Illinois 30th at 5.13%, and Georgia 40th at 4.02%, according to the WalletHub data.
The findings come as many credit unions continue to monitor auto portfolios closely amid broader questions around used-vehicle values, affordability pressure and consumer payment strain.