The price of cars, new or used, has skyrocketed over the past few years, mainly due to a slowdown in new car production. As such, it is important for car buyers to ensure that they get the right car loan to save money.
That’s especially true in states where borrowers have high balances, including Texas, Louisiana, and Georgia. But even in states and territories with equal rates, including the District of Columbia, Hawaii and Massachusetts, it’s important to keep in mind what you’re paying.
Key points of use
- Residents of Texas, Louisiana, and Georgia carry the highest car loan rates.
- DC, Hawaii, and Massachusetts residents carry lower auto loan costs on average.
- Car buyers should take the time to shop around and compare several loan options to ensure they get the lowest rate and monthly payment.
The highest and lowest auto loan rates by state
It is difficult for many buyers to buy a new or used car without financing at least one part of the purchase price. However, residents of some states 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 ratios
- Texas: $7,270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: $5,990
- Florida: $5,980
States with the lowest auto loan rates
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: $4,020
- Connecticut: $4,050
- New York: $4,080
Average auto loan size by state
The average car rental rate across the US is $5,210. Here’s how it breaks down one by one:
|State||Average car loan size|
|District of Columbia||$3,620|
Shop around to find the best car loan rates
Regardless of how much money you plan to borrow to buy another car, it’s important to compare rates and terms from several lenders. To get started, research the best car loan rates to find the top lenders and compare what they have to offer. For those with existing car loans, modifying the balance can save on monthly payments.