Auto loan balances vary widely across the country
The cost of a vehicle, whether new or used, has skyrocketed over the past two years, primarily due to disruptions in new car manufacturing. As such, it’s crucial for car buyers to make sure they get a good deal on an auto loan to save money.
This is especially true in states where borrowers have higher balances, including Texas, Louisiana, and Georgia. But even in states and districts with the lowest sales, including the District of Columbia, Hawaii, and Massachusetts, it’s important to keep what you’re paying in mind.
Key points to remember
- Residents of Texas, Louisiana and Georgia have the highest average auto loan balances.
- Residents of DC, Hawaii and Massachusetts have the least car loan debt on average.
- Car buyers should take the time to shop around and compare multiple loan options to make sure they’re getting the lowest rate and monthly payment.
Highest and lowest auto loan balances by state
It is difficult for many consumers to purchase a new or used vehicle without financing at least part of the purchase price. However, residents of some states tend to borrow more than others. Here’s a breakdown of the top five states with the highest and lowest auto loan balances, according to 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 Colombia: $3,620
- Hawaii: $3,980
- Massachusetts: $4,020
- Connecticut: $4,050
- New York: $4,080
Average auto loan balance by state
The average car loan balance in the United States is $5,210. Here’s how it breaks down by individual states:
|State||Average car loan balance|
|District of Colombia||$3,620|
|Caroline from the south||$5,420|
Shop around for the best car loan rates
No matter how much you plan to borrow to buy your next car, it’s important to compare rates and terms from multiple lenders. To get started, check out our best car loan rates to find the best lenders and compare what they have to offer. For those with existing car loans, refinancing the balance could potentially save on monthly payments.