Auto loan delinquencies v. credit card delinquencies: Where Honolulu stands

HONOLULU (KHON2) — Auto loans are one of the most common types of debt in the United States. With Hawaii’s love for as many vehicles as we cram onto our islands, auto loans are pretty prevalent.

Falling behind on these payments can hurt credit scores and even lead to losing a vehicle. That makes recent data from Honolulu especially notable.

A new report has placed Hawaii at the number three spot for tackling the issue of auto loan delinquencies.

Between the first and second quarters of 2025, Honolulu saw a 16.8% drop in auto loan delinquencies. That was the third-largest decrease amongst 100 major U.S. cities. As of the second quarter, 9.31% of auto loans in Honolulu were delinquent.

National context

The study, published Aug. 21, analyzed delinquency rates in 100 large cities. Winston-Salem, North Carolina, had the steepest drop, with a decline of 43.5%. Boise, Idaho, followed with a 19.8% decrease. Honolulu ranked third, ahead of Denver, Colorado and Laredo, Texas.

“ It’s encouraging to see that many cities had significant decreases in the auto loan delinquency rate between Q1 and Q2 2025,” said Chip Lupo, an analyst for the report. “This demonstrates either that economic conditions are improving or that people are prioritizing getting current with payments on secured debt like auto loans so they don’t get their property repossessed. Whatever the root cause of reduced delinquency rates, it’s good news for consumers and the economy overall.”

Secured debt priority

The data also show that Honolulu residents may be placing more focus on paying secured debt such as auto loans than on unsecured debt like credit cards.

Honolulu ranked 45th out of 100 cities for rising credit card delinquency. This suggests people are working to protect their vehicles even if other forms of debt increase.

Honolulu stands out as one of the top cities where auto loan delinquencies are falling. With nearly 17% fewer delinquencies in just one quarter, residents are making progress in keeping their cars and maintaining credit.

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The numbers reveal that while challenges with unsecured debt remain, Honolulu drivers are finding ways to stay current on their auto loans.