Car Loan Balances Vary Significantly Across the Country

The price of cars, both new and used, has risen over the past two years, mainly due to the cutback in new car production. Therefore, it is important for car buyers to make sure they get a good deal on car loans to save money.

This is especially true in states with higher borrower balances, including Texas, Louisiana, and Georgia. But even in states and counties with the lowest balances, including the District of Columbia, Hawaii and Massachusetts, it’s important to be mindful of your payments.

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Key Takeaways

  • Residents of Texas, Louisiana, and Georgia carry the highest average car loan rates.
  • Residents of DC, Hawaii, and Massachusetts carry the least amount of mortgage debt on average.
  • Car buyers should take the time to shop around and compare loan options to make sure they get the lowest rate and monthly payment.

The highest and lowest car loans by state

It is difficult for many consumers to buy a new or used car without financing at least 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 mortgage balances, according to data from the Federal Reserve Bank of New York for the fourth quarter of 2021.

Countries with the highest borrowing costs

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

Countries with the lowest borrowing costs

  1. District of Columbia: $3,620
  2. Hawaii: $3,980
  3. Massachusetts: $4,020
  4. Connecticut: $4,050
  5. New York: $4,080

Average car loan rates by state

The average car loan amount across the United States is $5,210. Here’s how it’s broken down by state:

STATE Average car loan
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
Indian $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 mortgage rates

Regardless of which loan you plan to use to buy your next car, it’s important to compare rates and terms from multiple lenders. To get started, review the best car loan rates to find the top lenders and compare what they have to offer. For those who have existing loans, financing the balance can save on monthly payments.

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