The price of vehicles, whether new or used, has risen sharply in recent years, primarily due to disruptions in new car production. As such, it’s crucial for car buyers to make sure they get a good deal on a car loan in order to save money.
This is especially true in states where borrowers have larger balances, including Texas, Louisiana and Georgia. But even in states and counties with the lowest balances, including the District of Columbia, Hawaii and Massachusetts, it’s important to be mindful of what you’re paying.
- Residents of Texas, Louisiana and Georgia have the highest average car loan amounts.
- Residents of DC County, Hawaii and Massachusetts have the lowest amount of auto loan debt on average.
- Car buyers should take the time to shop around and compare multiple loan options to secure the lowest rate and monthly payment.
The highest and lowest amount of car loans by state
Many consumers find it difficult 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 look at 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 car loan balances
- Texas: 7270 dollars
- Louisiana: 6510 dollars
- Georgia: 6080 dollars
- Arkansas: 5990 dollars
- Florida: 5980 dollars
States with the lowest car loan balances
- District of Columbia: 3620 dollars
- Hawaii: 3980 dollars
- Massachusetts: 4020 dollars
- Connecticut: 4050 dollars
- New York: 4080 dollars
Average auto loan balance by country
The average car loan amount in the US is $5,210. Here is how it is broken down by individual states:
|state||Average car loan balance|
|District of Columbia||3620 dollars|
|New Hampshire||5860 dollars|
|New Jersey||4500 dollars|
|New Mexico||5320 dollars|
|New York||4080 dollars|
|North Carolina||5600 dollars|
|North Dakota||5800 dollars|
|Rhode Island||4330 dollars|
|South Carolina||5420 dollars|
|South Dakota||4950 dollars|
|West Virginia||5640 dollars|
Shop and 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, browse our best car loan rates to find the best lenders and compare what they offer. For those with existing car loans, a balance refinance could potentially save on monthly payments.