Car Loan Balances Vary Significantly Across the Country

The cost of a new or used vehicle has skyrocketed over the past couple of years, largely due to disruptions in new car production. That’s why it’s so important for car buyers to make sure they get a good car loan deal 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 pay attention to what you pay.

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Key Takeaways

  • Residents of Texas, Louisiana, and Georgia have the highest average auto loan balances.
  • Residents of DC, Hawaii, and Massachusetts have the least amount of auto loan debt on average.
  • Car buyers should take the time to shop around and compare multiple loan options to ensure the lowest rate and monthly payment.

Highest and lowest car loan balances by state

Many consumers find it difficult 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.

Countries with the highest auto loan balances

  1. Texas: 7,270 US dollars
  2. Louisiana: 6510 US dollars
  3. Georgia: 6080 US dollars
  4. Arkansas: $5,990
  5. Florida: 5980 US dollars

Countries with the lowest car loan balances

  1. District of Columbia: 3620 US dollars
  2. Hawaii: 3980 US dollars
  3. Massachusetts: $4,020
  4. Connecticut: $4050
  5. New York: 4080 USD

Average auto loan balance by state

The average car loan balance across the US is $5,210. Here’s how it breaks down by state:

Country Average car loan balance
Alabama $5,550
Alaska $5,350
Arizona 5780 US dollars
Arkansas $5,990
California 4940 US dollars
Colorado 5090 US dollars
Connecticut $4050
Delaware 5440 US dollars
District of Columbia 3620 US dollars
Florida 5980 US dollars
Georgia 6080 US dollars
Hawaii 3970 US dollars
Idaho 5190 US dollars
Illinois 4630 USD
Indiana 4910 US dollars
Iowa 4920 US dollars
Kansas 4430 US dollars
Kentucky 4530 US dollars
Louisiana 6510 US dollars
Maine 5180 US dollars
Maryland $5,700
Massachusetts $4,020
Michigan 4410 US dollars
Minnesota 4440 USD
Mississippi 5780 US dollars
Missouri 4740 US dollars
Montana 4740 US dollars
Nebraska 4,620 US dollars
Nevada 5710 US dollars
New Hampshire 5,860 US dollars
New Jersey $4,500
New Mexico 5320 US dollars
New York 4080 USD
North Carolina $5,600
North Dakota $5,800
Ohio 4940 US dollars
Oklahoma $5,900
Oregon $4,300
Pennsylvania 4650 US dollars
Rhode Island 4330 USD
South Carolina 5420 US dollars
South Dakota 4950 US dollars
Tennessee 5230 US dollars
Texas 7,270 US dollars
Felt 5710 US dollars
Vermont 5,620 US dollars
Virginia 5210 US dollars
Washington 4,620 US dollars
West Virginia 5,640 US dollars
Wisconsin $4,300
Wyoming 5480 USD

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 rates and terms from multiple lenders. To get started, review our best car loan rates to find the best lenders and compare what they have to offer. For those with auto loans, balance refinancing could save on monthly payments.

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