Car Loan Balances Vary Significantly Across the Country

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.

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key takeaways

  • 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

  1. Texas: $7,270
  2. Louisiana: $6,510
  3. Georgia: $6,080
  4. Arkansas: $5,990
  5. Florida: $5,980

States with the lowest auto loan balances

  1. District of Columbia: $3,620
  2. Hawaii: $3,980
  3. Massachusetts: $4,020
  4. Connecticut: $4,050
  5. 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
Alabama $5,550
Alaska $5,350
Arizona $5,780
Arkansas $5,990
California $4,940
Colorado $5,090
Connecticut $4,050
Delaware $5,440
District of Columbia $3,620
Florida $5,980
Georgia $6,080
hawaii $3,970
Idaho $5,190
Illinois $4,630
Indiana $4,910
Iowa $4,920
Kansas $4,430
Kentucky $4,530
Louisiana $6,510
Maine $5,180
Maryland $5,700
Massachusetts $4,020
Michigan $4,410
Minnesota $4,440
Mississippi $5,780
Missouri $4,740
Montana $4,740
Nebraska $4,620
Nevada $5,710
New Hampshire $5,860
New Jersey $4,500
new mexico $5,320
New York $4,080
North Carolina $5,600
North Dakota $5,800
Ohio $4,940
Oklahoma $5,900
Oregon $4,300
Pennsylvania $4,650
Rhode Island $4,330
South Carolina $5,420
South Dakota $4,950
Tennessee $5,230
Texas $7,270
Utah $5,710
Vermont $5,620
Virginia $5,210
Washington $4,620
West Virginia $5,640
the state of Wisconsin $4,300
Wyoming $5,480

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.

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