The cost of a vehicle, whether new or used, has skyrocketed in recent years, mainly due to disruptions in the production of new cars. As such, it is crucial for car buyers to ensure that they get a good deal on a car loan in order 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 balances, including the District of Columbia, Hawaii and Massachusetts, it’s important to be mindful of what you pay.
- Residents of Texas, Louisiana and Georgia carry the highest average auto loan balances.
- Residents of DC, Hawaii and Massachusetts carry the least amount of auto loan debt on average.
- Car buyers should take their time to shop around and compare various loan options to ensure they get the lowest rate and monthly payment.
The 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 a portion 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 Columbia: $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 US is $5,210. Here’s how it breaks down by individual states:
|State||Average car loan balance|
|District of Columbia||$3,620|
Shop around 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 various lenders. To get started, review 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.