Car Loan Balances Vary Significantly Across the Country

The cost of a vehicle, whether new or used, has skyrocketed over the past few years, mainly due to disruptions in the production of new cars. Therefore, it is important for car buyers to make sure they get a decent car loan to save money.

That’s especially true in states where borrowers have higher balances, including Texas, Louisiana, and Georgia. But even in the 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 lessons learned

  • 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 and compare a wide selection of loans to ensure they get the lowest interest rates and monthly payments.

Highest and Lowest Auto Loan Balances 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. Below is 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 Highest Auto Loan Balance

  1. Texas: $7,270
  2. Louisiana: $6,510
  3. Georgia: $6,080
  4. Arkansas: $5,990
  5. Florida: $5,980

States with Lowest Auto Loan Balance

  1. District of Columbia: $3,620
  2. Hawaii: $3,980
  3. Massachusetts: 4,020 dollars
  4. Connecticut: 4,050 dollars
  5. New York: $4,080

Average Auto Loan Balance by State

The national average auto loan balance is $5,210. Here’s how it splits by state:

State Average car loan balance
Alabama $5,550
Alaska $5,350
Arizona $5,780
Arkansas $5,990
California $4,940
Colorado $5,090
Connecticut 4,050 dollars
Delaware $5,440
District of Columbia $3,620
Florida $5,980
Georgia $6,080
Hawaii $3,970
Idaho $5,190
Illinois $4,630
Indiana $4,910
Iowa $4,920
Kansas $4,430
Kentucky $4,530
Louisiana $6,510
Maine $5,180
Maryland $5,700
Massachusetts 4,020 dollars
Michigan $4,410
Minnesota $4,440
Mississippi $5,780
Missouri $4,740
Montana $4,740
Nebraska $4,620
Nevada $5,710
New Hampshire $5,860
New shirt $4,500
New Mexico $5,320
New York $4,080
North Carolina $5,600
North Dakota $5,800
Ohio $4,940
Oklahoma $5,900
Oregon $4,300
Pennsylvania $4,650
Rhode Island $4,330
South Carolina $5,420
South Dakota $4,950
Tennessee $5,230
Texas $7,270
Utah $5,710
Vermont $5,620
Virginia $5,210
Washington $4,620
West Virginia $5,640
Wisconsin $4,300
Wyoming $5,480

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 interest rates and terms from multiple lenders. To get started, take a look at our best auto loan rates to find the top lenders and compare what they have to offer. For those with existing car loans, refinancing the balance can help save on monthly payments.


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