The cost of a vehicle, whether new or used, has soared in the past two years, mainly due to disruptions in the production of new cars. That said, 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 where borrowers have higher balances, including Texas, Louisiana, and Georgia. But even in states and districts with the lowest balances, including the District of Columbia, Hawaii, and Massachusetts, it’s important to be aware of what you’re paying.
Key Takeaways
- Residents of Texas, Louisiana, and Georgia carry the highest average car loan balances.
- Residents of DC, Hawaii, and Massachusetts carry the least amount of car loan on average.
- Car buyers should take their time shopping around and comparing multiple loan options to ensure they get the lowest rate and monthly payment.
The Highest and Lowest Auto Loan Balances in the State
It is difficult for many consumers to purchase a new or used vehicle without financing at least a portion of the purchase price. However, residents of some states tend to borrow more than others. Here’s 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 the Highest 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
Average Auto Loan Balance by State
The average car loan balance across the US is $5,210. Here’s how it breaks down into individual states:
| 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 |
| 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 |
| 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 Jersey | $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 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 existing car loans, refinancing the balance can save on monthly payments.
