The price of a new or used car has skyrocketed over the past two years, primarily due to disruptions in new car production. That’s why it’s important for car buyers to get a good deal to save money on their loan.
This is 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 mindful of what you’re paying.
- Residents of Texas, Louisiana and Georgia have the highest auto loan balances.
- Residents of DC, Hawaii and Massachusetts have the lowest average car loan amounts.
- Car buyers should take the time to shop around and compare multiple loan options to ensure they get the lowest rate and monthly payment.
Highest and lowest auto loan balances by state
Many consumers find it difficult to buy a new or used car without financing at least a portion of the purchase price. However, residents of some states have more credit 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 car loan balance by state
The average car loan balance across the US is $5,210. Here’s how it breaks down by state:
|State||Average car loan balance|
|District of Columbia||$3,620|
Shop around to find the best car loan rates
No matter how much you want to borrow to buy your next car, it’s important to compare rates and terms from multiple lenders. To get started, check out our best car loan rates to find the best lenders and compare what they have to offer. For those with existing car loans, a balance sheet refinance can potentially save on monthly payments.