Top 20 cities that might contain most & least risk in your portfolio
WalletHub recently released its latest Auto Financing Report, compiling lists of what analysts classified as the Top 20 cities where consumers overspend on vehicles and where they spend the least.
Perhaps managers and underwriters could review the lists and say these cities are where finance companies have the most and list risk in their portfolios since credit background played a role in how WalletHub assembled these rundowns.
In fact, WalletHub pointed out that compared with buyers who have excellent credit, individuals with fair credit will spend about six times more — or about $6,296 — in interest over the duration of a five-year installment contract that has an opening balance of $20,000.
And WalletHub also cited the Federal Reserve Bank of New York’s latest report on household indebtedness, which indicated that auto-finance balances have grown over the past nine years, increasing by another $28 billion in Q3 2020.
So, with all of those details in mind from its report that can be found online, here are the cities that WalletHub said overspend on cars:
Rio Grande City, Texas
Willis, Texas
Bastrop, La.
Donna, Texas
Deming, N.M.
San Juan, Texas
Uvalde, Texas
Alice, Texas
Livingston, Texas
San Luis, Ariz.
Mercedes, Texas
Leesville, La.
Brownsville, Texas
Weslaco, Texas
Moultrie, Ga.
Lake Placid, Fla.
Watertown, Wisc.
Dahlonega, Ga.
Alamo, Texas
Pharr, Texas
Meanwhile, here are the cities that WalletHub said spend the least on cars:
Birmingham, Mich.
Westfield, N.J.
San Carlos, Calif.
Belmont, Calif.
Manhattan Beach, Calif.
Garden City, N.Y.
Belmont, Mass.
Summit, N.J.
Chevy Chase, Md.
Lexington, Mass.
Ridgewood, N.J.
Bloomfield Hills, Mich.
Mill Valley, Calif.
Westport, Conn.
Palo Alto, Calif.
Cupertino, Calif.
Bronxville, N.Y.
Los Altos, Calif.
Darien, Conn.
Scarsdale, N.Y.