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.
- 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
- Texas: $7,270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: $5,990
- Florida: $5,980
Countries with the lowest borrowing costs
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: $4,020
- Connecticut: $4,050
- 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|
|District of Columbia||$3,620|
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.