Maryland Sees Rise in Auto Loan Defaults

Many say that it is no surprise that the number of auto loans defaulting is what it is. They say that when the mortgage crisis started, they knew that auto loans would be next. However, many in Maryland did not realize how hard it would hit their state.

Many residents of the state are facing major auto loan defaults as they cannot afford to make payments with the way that the economy is today. They say that between that and gas prices – they cannot afford to pay for their auto loans, nevertheless even drive the cars themselves.

Auto loan dealers have seen not only a reduction in the number of auto loans being taken out but an increase in the number that are being defaulted on. Now they are faced with what to do with the increase in the number of delinquent auto loans.

They show 3.13% of auto loans are now delinquent, which is the highest rate they have seen in the last seventeen years. It is 22% above the rate a year earlier. These are auto loans that are not just a couple of days late – these are auto loans that are more than a month behind.





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