Car Loan Balances Vary Significantly Across the Country

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.

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Key operations

  • 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

  1. Texas: 7270 dollars
  2. Louisiana: 6510 dollars
  3. Georgia: 6080 dollars
  4. Arkansas: 5990 dollars
  5. Florida: 5980 dollars

States with the lowest car loan balances

  1. District of Columbia: 3620 dollars
  2. Hawaii: 3980 dollars
  3. Massachusetts: 4020 dollars
  4. Connecticut: 4050 dollars
  5. 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
Alabama 5550 dollars
Alaska 5350 dollars
Arizona 5780 dollars
Arkansas 5990 dollars
California 4940 dollars
Colorado 5090 dollars
Connecticut 4050 dollars
Delaware 5440 dollars
District of Columbia 3620 dollars
Florida 5980 dollars
Georgia 6080 dollars
Hawaii 3970 dollars
Idaho 5190 dollars
Illinois 4630 dollars
Indiana 4910 dollars
Iowa 4920 dollars
Kansas 4430 dollars
Kentucky 4530 dollars
Louisiana 6510 dollars
Maine 5180 dollars
Maryland 5700 dollars
Massachusetts 4020 dollars
Michigan 4410 dollars
Minnesota 4440 dollars
Mississippi 5780 dollars
Missouri 4740 dollars
Montana 4740 dollars
Nebraska 4620 dollars
Nevada 5710 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
Ohio 4940 dollars
Oklahoma 5900 dollars
Oregon 4300 dollars
Pennsylvania 4650 dollars
Rhode Island 4330 dollars
South Carolina 5420 dollars
South Dakota 4950 dollars
Tennessee 5230 dollars
Texas 7270 dollars
Utah 5710 dollars
Vermont 5620 dollars
Virginia 5210 dollars
Washington 4620 dollars
West Virginia 5640 dollars
Wisconsin 4300 dollars
Wyoming 5480 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.

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