Dakotans Pay Their Car Loans on Time

SCHAUMBURG, Ill. – The Dakotas' vehicle owners are the best or among the best at keeping their loans current, according to Experian Automotive.

North Dakotans have the lowest 30-day delinquency rate at 1.18 percent of loans and South Dakotans have the second lowest rate at 1.43 percent. Minnesotans were third at 1.49 percent.

For 60-day delinquencies, North Dakotans again have the lowest rate in the nation at 0.27 percent and South Dakotans were fourth at 0.42 percent.

However, nationally, the credit rating company says 30- and 60-day automotive-loan delinquencies were up in the third quarter of 2014. According to its latest State of the Automotive Finance Market report, 30-day delinquencies grew 3.7 percent from the previous year. Similarly, 60-day delinquencies jumped 8.6 percent during the same time period.

"While we have observed a rise in delinquencies over the past few quarters, it was to be expected due to the growth in subprime loans. We have to keep in mind that a majority of the market is still in the prime risk category," said Melinda Zabritski, Experian's senior director of automotive credit.

Further findings from the report showed that, at a state level, states in the South accounted for four of the top five highest delinquency rates in both the 30- and 60-day category. On the flip side, the states with the lowest delinquency rates in both categories primarily resided in the Midwest and Northwest regions.

Mississippians have the highest 30-day delinquency rate at 4.49 percent of loans and Washington, D.C. residents have the highest 60-day delinquency rate in the country at 1.42 percent.