The price of a car, whether new or used, has increased over the past two years, mainly due to the disruption in the production of new cars. So, it’s important for car buyers to make sure they get a good deal on a car loan to save money.
That’s especially true in states with high borrower balances, including Texas, Louisiana, and Georgia. But even in states and counties with low balances, including the District of Columbia, Hawaii, and Massachusetts, it’s important to think about what you’re paying.
- Residents of Texas, Louisiana, and Georgia carry the highest auto loan balances.
- DC, Hawaii, and Massachusetts are home to the lowest average car loan debt.
- Car buyers should take their time to shop around and compare multiple loans to ensure they get the lowest rate and monthly payments.
Highest and Lowest Auto Loan Balances by State
Many buyers find it difficult to buy a new or used car without financing a portion of the purchase price. However, residents of some states are more likely to borrow money than others. Here is a list of the top five states with the highest and lowest car loan rates, according to data from the Federal Reserve Bank of New York for the fourth quarter of 2021.
States with the Best 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
Check Auto Loan Balance By State
The average car loan balance in the US is $5,210. Here’s how it breaks down by state:
|State||Standard Auto 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 multiple lenders. To get started, review our best car loan rates to find the top lenders and compare what they have to offer. For those with auto loans, balance refinancing can save on monthly payments.