The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
In many states, once you miss a payment on an auto loan, your creditor can repossess the vehicle at any time. Your loan agreement will state what constitutes default, but in general, you are risking repossession once your payment is more than 30 days past due, which is a chance you don’t want to take, not only for the sake of your ability to get around but also for your credit standing.
Whatever the reason, borrowers in some states have a particularly difficult time staying current on car payments. About 1 of every 172 outstanding auto loans in the U.S. resulted in a repossession in the first quarter of this year, according to data from Experian Automotive, but in some states, the repo man is a much more common sight. Here are the 10 states — actually nine states and the nation’s capital — that had the highest repossession rates in the first quarter, according to Experian’s numbers.
10. Virginia
about 1 repossession per 110 auto loans (0.91%)
Repossessions are up 51.9% from the first quarter of 2013
9. District of Columbia
1 in 108 (0.93%), up 0.10%
8. Georgia
1 in 91 (1.1%), up 70.9%
7. Oklahoma
1 in 90 (1.11%), up 87.1%
6. Texas
1 in 88 (1.13%), up 66.3%
5. Florida
1 in 86 (1.16%), up 48.1%
4. North Carolina
1 in 78 (1.27%), up 101.4%
3. New Mexico
1 in 68 (1.46%), up 135.2%
2. Arizona
1 in 66 (1.52%), up 46.3%
1. Nevada
1 in 64 (1.56%), up 101.9%
A repossession will remain on your credit report for seven years after you first went delinquent, limiting your ability to get future financing, including auto loans. When you’re considering buying a car, make sure you’ve determined an affordable monthly payment and you stick to your budget when browsing dealers’ lots.
As life goes, you can’t plan for everything, like a sudden loss in employment or drop in income that may jeopardize your ability to repay the loan. In a situation like that, you’ll have to do your best to meet your financial obligations, but you may have to weigh the potential consequences of letting some bills go unpaid. Whenever you take out credit, whether it be for a car, home, education or miscellaneous expenses, you need to know what will happen if you fail to pay.
Simply put, bad things happen when you default on a loan. You can lose your house or car, a debt collector may contact you, or you could have your wages garnished. Determining your monthly payments in advance of committing to the loan will help you avoid default. If you do go through a tough spot with repayment, do your best to maintain as many good credit practices as possible, in order to minimize the damage to your credit standing. You can see how your auto loan or any other form of credit you have impacts your credit score by checking your free credit data on Credit.com.
Image: Pascal Baatz
April 11, 2023
Uncategorized
September 13, 2021
Uncategorized
August 4, 2021
Uncategorized