Car Loan Balances Vary Significantly Across the Country

The cost of a vehicle, either new or used, has skyrocketed over the past couple of years, primarily due to disruptions in the manufacturing of new cars. As such, it's crucial for car buyers to ensure they get a good deal on an auto loan to save money.

That's particularly 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.

The Highest and Lowest Auto Loan Balances by State

It's difficult for many consumers to buy 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 U.S. is $5,210. Here's how it breaks down by individual states:

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 could potentially save on monthly payments.