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Maskot/Getty Images October 31, 2022 Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched information that breaks down otherwise complex topics into manageable bites. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Average car loan delinquency rates, interest and payments aren’t truly influenced by geographical location. Rather, they are determined by a driver’s credit score and history, income, debts and the loan amount and term. But the statistics broken out by location do reveal typical habits of drivers in each state. Over the past year, have been on the rise — which means they’re returning to normal pre-pandemic levels, according to TransUnion. This increase is primarily due to the resurgence of delinquencies following the end of pandemic-related relief. On top of this, caused more demand coupled with less supply — meaning high costs to buy and finance. Overall, loan balances grew from an already steep $1.35 trillion in 2021, found Experian. So as interest rates increase and delinquencies return to more normal levels, consider where your home state falls in the shuffle. Car payment statistics
Auto Car Purchase The average monthly payment for new cars is $667, according to Experian. The average monthly payment for used cars is $515, according to Experian. New cars cost an average of $48,301, according to Kelley Blue Book. Average loan term for new cars is 69.46, according to Experian. Average loan rate for new cars is 4.33 percent, according to Experian. Average loan term for used cars is 68.01 months, according to Experian. Average loan rate for used cars is 8.62 percent, according to Experian. Drivers pay an average down payment of $6,026, according to Edmunds. States with the highest car loan balance
An auto loan balance is the remaining amount a driver has to pay on their loan. The average car loan balance across the country is $5,210. State average balances range from around $3,000 to upwards of $6,000. This data, gathered from the New York Fed Consumer Credit Panel and Equifax, will be used to explore the top ten states — with an additional two states due to a tie — with the highest car loan balances. Texas: balance of $7,270 Louisiana: balance of $6,510 Georgia: balance of $6,080 Arkansas: balance of $5,990 Florida: balance of $5,980 Oklahoma: balance of $5,900 New Hampshire: balance of $5,860 North Dakota: balance of $5,800 Mississippi and Arizona: balances of $5,780 Utah and Nevada: balances of $5,710 These higher balances are partly due to a few macro environmental issues across the country, and are not just state specific. One major factor is the issue of supply versus demand. Vehicle inventory shrank last year due to supply chain issues and the cost for available cars rose — causing drivers to finance more. Along with this, drivers chose longer loan terms to lower the of their car payments. Average used vehicle terms in the second quarter reached a record high of 68.01 months. New vehicle terms told a similar story with drivers financing for an average of 69.46 months. Average car payment by state
State Average FICO credit score Average monthly payment Texas 680 $494.66 Louisiana 677 $487.62 Georgia 682 $505.07 Arkansas 683 $514.90 Florida 694 $470.24 Oklahoma 682 $463.78 New Hampshire 724 $471.61 North Dakota 727 $546.00 Mississippi 667 $489.55 Arizona 696 $491.75 Utah 716 $477.25 Nevada 686 $468.50 The average monthly payment figures for each state were calculated using a combination of the average car price for the state, average loan term and interest rate. Drivers can take anywhere between 24 and 60 months to pay off their vehicle, some even taking up to eight years — which can be a risk. A longer term lowers the monthly cost, but it leads to a higher cost overall. The interest rate that you pay for your vehicle is based on a variety of factors such as your credit, the vehicle type and the terms you choose. On average drivers can expect to pay around 4.33 percent for new cars and 8.62 percent for used, according to the second quarter data from Experian. Below are the average APRs as of October 26, 2022, based on a . 36-month term 48-month term 60-month term New car 5.58% 5.61% 5.63% Used car 5.88% 6.22% 7.31% Average used car price by state
State Average used car price Texas $34,340 Louisiana $33,937 Georgia $34,936 Arkansas $35,499 Florida $33,229 Oklahoma $33,145 New Hampshire $33,021 North Dakota $37,279 Mississippi $34,048 Arizona $34,174 Utah $33,344 Nevada $32,843 Vehicle prices hit record highs in 2022. cost upwards of $48,000 in the summer of 2022 — up 11.9 percent from the same time last year, according to Kelley Blue Book. Fortunately, prices are reaching stable prices once again, the average price of a used car sold for $28,237 in September, according to . In terms of vehicle types, SUVs remain the most popular, surpassing 60 percent of financed vehicles in the second quarter of 2022, according to Experian. North Dakota’s — which carries the highest average used car price — most commonly sold vehicles are SUVs. While in Nevada, on the other price end, the most popular vehicle type are passenger cars, according to . Car loan delinquency by state
State Average delinquency rates Texas 5.00% Louisiana 5.64% Georgia 5.15% Arkansas 2.53% Florida 4.66% Oklahoma 4.86% New Hampshire 2.14% North Dakota 2.27% Mississippi 6.14% Arizona 4.00% Utah 1.92% Nevada 2.12% Texas, which has the highest average car payment does carry high average delinquency, but not the highest out of the top states. Mississippi leads with 6.14, much higher than the national averages displayed below. Interestingly though, TransUnion found that consumers continue to value their auto loans in line with other financial commitments. Just behind mortgages, and far higher than credit cards, drivers prioritize getting vehicle payments in. When it comes to prioritizing your payment the key is preparedness. To do this you must only finance what you can afford. The best way to do this is to your expected monthly payment along with what that accrued interest will look like during the lifetime of the loan. States with the lowest car loan balance
State Average auto loan balance Hawaii $3,970 Massassuchutes $4,020 Connecticut $4,050 New York $4,080 Oregon $4,300 Hawaii takes the gold medal for lowest average auto loan balance, followed closely by the home of the Mayflower, Massachusetts. These states carry averages dramatically lower than the national median of $5,210. But as explained, the auto loan balance is independent of ZIP code and rather relates to the typical background of each state. Financial literacy, income and cost of living all play important roles. When looking at the states with the lowest balances, for example, three out of the five hold some of the highest median household income in the country, according to the . When diving deeper, average credit scores also tend to be higher. Hawaii’s average FICO score is 723, falling under the very good category according to Equifax. With the remaining states carrying similarly competitive averages. Frequently asked questions
How do you refinance an auto loan
The your auto loan are fairly similar to the ones you took to get your first loan. You must review your current loan — paying close attention to current interest rates and terms — then shop around at a few lenders and .
How many car payments can you miss before vehicle repossession
This number varies by lender. Generally, your vehicle can be directly after you default. But most lenders will allow multiple months, usually up to 120 days.
How do you get an auto loan
There are many ways to for your vehicle. Most commonly, you can borrow from a bank, credit union or online lender. But no matter the destination consider these steps to get the best deal: Shop around and compare offers from at least three lenders. Apply for loan prequalification to get a firm grasp on expected payments. Fill out a loan application with accurate information about your credit history and vehicle details. Start paying your loan each month.
What is a good auto loan rate
Many factors contribute to determining interest rates, like credit history, vehicle age and chosen loan term. The for new and used cars was 4.33 percent and 8.62 percent, respectively, according to the Experian. Consider these averages when shopping but remember that the most competitive rates will be given to those with strong credit. SHARE: Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched information that breaks down otherwise complex topics into manageable bites. Related Articles