The cost of new or used cars has skyrocketed over the past few years, largely due to disruptions in new vehicle manufacturing. Therefore, it is crucial for car buyers to make sure they get a good car loan to save money.
This is especially true in states with higher borrower balances, including Texas, Louisiana and Georgia. But even in states and territories with the lowest balances, including the District of Columbia, Hawaii, and Massachusetts, it’s important to pay attention to what you pay.
- Residents in Texas, Louisiana and Georgia have the highest average auto loan balances.
- Residents of DC, Hawaii and Massachusetts have the least auto loan debt on average.
- Car buyers should take the time to shop around and compare multiple loan options to ensure they are getting the lowest interest rates and monthly payments.
Highest and lowest auto loan balances by state
Many consumers have a hard time buying a new or used car without paying at least a portion of the purchase price. However, residents of some states tend to borrow more than others. Here’s a breakdown of the five states with the highest and lowest auto loan balances, based on data from the Federal Reserve Bank of New York for the fourth quarter of 2021.
States with the Highest Auto Loan Balances
- Texas: $7,270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: $5,990
- Florida: $5,980
States with the lowest auto loan balances
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: $4,020
- Connecticut: $4,050
- New York: $4,080
Average auto loan balances by state
The average auto loan balance in the US is $5,210. Here’s how it breaks down by state:
|state||Average auto loan balance|
|District of Columbia||$3,620|
|the state of Wisconsin||$4,300|
Shop around to find the best car loan rates
No matter how much you plan to borrow to buy your next car, it’s important to compare the rates and terms of multiple lenders. First, check out our best auto loan rates to find the top lenders and compare what they offer. For those with existing auto loans, refinancing the balance may save on monthly payments.