The cost of a vehicle, whether new or used, has skyrocketed in recent years, largely due to disruptions in new car manufacturing. Therefore, it is crucial for car buyers to secure good credit to save money.
This is especially true in states where borrowers have higher balances, including Texas, Louisiana and Georgia. But even in states and districts with the lowest credit balances, including the District of Columbia, Hawaii and Massachusetts, it’s important to be careful what you’re paying.
The highest and lowest auto loan balances by state
It is difficult for many consumers to purchase a new or used vehicle without financing at least part of the purchase price. However, residents of some states tend to borrow more than others. Here’s a breakdown of the five states with the highest and lowest auto loan balances in the fourth quarter of 2021, according to data from the Federal Reserve Bank of New York.
States with the largest auto loan balances
- Texas: US$ 7.270
- Louisiana: $6,510
- Georgia: $6,080
- Arkansas: US$ 5.990
- Florida: $5,980
Listing Source: Investopedia.
States with lowest auto loan balances
- District of Columbia: $3,620
- Hawaii: $3,980
- Massachusetts: $ 4.020
- Connecticut: $ 4.050
- New York: $4,080
Listing Source: Investopedia.
Average balance of car financing by State
The average US auto loan balance is $5,210. Check the breakdown by state:
| 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 Colombia | $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 |
| Nova Hampshire | $5,860 |
| New Jersey | $4,500 |
| New Mexico | $5,320 |
| New York | $4,080 |
| North Caroline | $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 |
| Dakota do Sul | $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 |
Find the best car loan rates
Regardless of how much you want to borrow to buy your next car, it’s important to compare interest rates and terms from various lenders. First, check out our best car loan rates to find the best lenders and compare what they have to offer. For those with existing car loans, refinancing the remaining balance can save you on monthly payments.