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.
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
- Texas: $7,270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: $5,990
- Florida: $5,980
States with Lowest Auto Loan Balance
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: 4,020 dollars
- Connecticut: 4,050 dollars
- 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.
