ANNAPOLIS, Md. — Maryland ranks 43rd among states for the increase in auto loan delinquency, with a 2.92% rise in delinquent auto loan tradelines between Q3 and Q4 2024.
While the state’s delinquency growth is relatively low compared to national leaders like Delaware (8.77%) and Kansas (7.89%), 19.27% of Maryland’s auto loans were delinquent in Q4 2024, signaling financial strain for some residents amid rising interest rates and economic pressures.
Auto loan delinquency, defined as payments overdue by 30 days or more, carries severe consequences, including credit score damage, late fees, and potential vehicle repossession. “When you are delinquent on auto loan debt, try to get your account current as soon as possible to minimize the consequences,” said John Kiernan, WalletHub Editor. “If you pay fewer than 30 days late, your delinquency won’t be reported to the credit bureaus, though you’ll still likely owe a late fee. 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 recommends hardship plans, expense cuts, or debt consolidation to manage overdue payments.
Maryland’s 19.27% delinquency rate reflects a significant portion of borrowers struggling, though the state’s modest 2.92% increase suggests relative stability compared to states like Mississippi, where 27.32% of loans were delinquent. The Federal Reserve Bank of New York reported that 4.8% of U.S. auto loans were 90+ days delinquent in Q4 2024, up 15.8% from Q4 2023, with Maryland’s overall delinquency rate aligning closer to states like Texas (19.05%) and Nevada (18.90%).
Economic factors, including high vehicle costs and interest rates, contribute to delinquency trends. In Maryland, the average monthly payment for new cars was $742 in Q4 2024, per Experian’s State of the Automotive Finance Market, with used car payments at $525. The state’s reliance on federal jobs—over 140,000 in 2025, per the Congressional Research Service—heightens vulnerability to federal spending cuts proposed by President Donald Trump, which could exacerbate financial stress, as noted in a Moody’s Ratings report.
Maryland’s auto loan market also reflects national trends toward longer loan terms, averaging 68 months for new cars and 67.2 months for used, increasing total interest costs. The Federal Reserve attributes rising delinquencies to larger loan amounts, with Maryland borrowers financing SUVs (61% of financed vehicles) at higher rates. Subprime borrowers, particularly those with credit scores below 600, face higher delinquency risks, as they account for 14.1% of financing but pay up to $759 monthly for new vehicles.
Despite the uptick, Maryland’s delinquency growth is slower than in states like Alabama (6.82%) or Colorado (6.92%). Banks hold 30% of Maryland’s auto loan market, followed by credit unions at 22.3%, per Experian, offering potential relief through hardship programs. The Maryland Department of Labor advises residents to contact lenders early to avoid repossession, which can begin after 60-90 days of missed payments.
As Maryland navigates economic uncertainty, residents are urged to prioritize auto loan payments to protect their credit and vehicles. For financial resources, visit www.maryland.gov.
