Car Loan Balances Vary Significantly Across the Country

The cost of a new or used vehicle has skyrocketed over the past few years, mainly due to disruptions in new car production. That’s why it’s so important for car buyers to make sure they’re getting 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 territories with the lowest balances, including the District of Columbia, Hawaii, and Massachusetts, it’s important to be mindful of what you pay.

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Important Implications

  • Texas, Louisiana, and Georgia residents have the highest average auto loan balances.
  • DC, Hawaii and Massachusetts residents have the least amount of auto loan debt on average.
  • Car buyers should take the time to shop and compare multiple loan options to make sure they get 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

  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 Car Loan Balance by State

The average car loan balance across the US is $5,210. Here’s how it breaks down based on individual situations:

Situation Average Vehicle 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
India $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
Rhodes 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
Wisconsin $4,300
Wyoming $5,480

Shop to Find the Best Car Loan Rates

Regardless of 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 offer. For those with existing car loans, refinancing the balance can potentially save on monthly payments.

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