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.
Key Takeaways
- Residents of Texas, Louisiana, and Georgia carry the highest average auto loan balances.
- DC, Hawaii, and Massachusetts residents carry the least amount of auto loan debt on average.
- Car buyers should take their time to shop around and compare multiple loan options to ensure they get the lowest rate and monthly payment.
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
- Texas: $7,270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: $5,990
- Florida: $5,980
States with the Lowest Auto Loan Balances
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: $4,020
- Connecticut: $4,050
- New York: $4,080
Average Auto Loan Balance by State
The average car loan balance across the US is $5,210. Here’s how it breaks down by individual states:
| State | Average Car Loan Balance |
| 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 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.