Car Loan Balances Vary Significantly Across the Country

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.

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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

  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 rates

  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 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
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 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.

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