Car Loan Balances Vary Significantly Across the Country

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.

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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

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

States with the Lowest Auto Loan Balances

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

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