Perhaps signaling locations where your collections department needs to tailor its focus, Experian pinpointed the top 10 states with the highest rates of 30-day delinquency after the third quarter.
According to Experian’s Q3 2019 State of the Automotive Finance Market report, analysts found the overall 30-day delinquency rate remained nearly flat year-over-year, coming in at 2.25%, just 1 basis point lower than the close of the same quarter a year earlier.
As expected, the 30-day delinquency rate was highest for finance companies, which Experian classifies as providers that do not carry commercial deposits and oftentimes book the most subprime paper. The 30-day delinquency rate for finance companies in Q3 was 4.69%, up from 4.57% a year earlier.
While Experian noticed captives had a 30-day delinquency rate in Q3 near the overall reading (2.58%), analysts indicated the rates for banks and credit unions each settled below the overall mark, coming in at 1.76% and 1.03%, respectively.
Looking at the data by location, here is Experian’s rundown of the top 10 states with the highest rates of 30-day delinquency:
1. Mississippi: 4.03%
2. Maryland: 3.89%
3. Louisiana: 3.36%
4. Georgia: 2.96%
5. South Carolina: 2.84%
6. Alabama: 2.74%
7. North Carolina: 2.68%
8. Delaware: 2.67%
9. Texas: 2.66%
10. Arkansas: 2.57%