Exploring the Varied Landscape of Auto Loan Balances Across U.S. States

Trying to navigate the world of auto loans can be a journey, but we're here to guide you through it! 

While your credit score and financial history are the main drivers of your loan terms, it's interesting to see how car loan balances stack up across the states.
 

The Lone Star State Tops the Chart!

Everything's bigger in Texas, including the average car become loan balance, which leads the nation at $7,810. But don't worry, it's not just a Texas thing—vehicle costs have been zooming up all over, making it hard to hit the brakes on spending. 

Close on Texas’ heels is Louisiana, where drivers carry an average balance of $6,860. Meanwhile, in the Sunshine State of Florida, car loan balances average $6,560. New Mexico, not far behind, sees its average car loan balance hover around $6,550. 

These figures provide a quick glimpse into the varied landscape of auto loan balances across different states, illustrating the diverse financial commitments of American car owners.

With new car prices averaging a hefty $48,510 and interest rates hovering around 7.18% for new cars and 11.93% for used ones, keeping your monthly payments manageable is more like a strategic game.
 

Payments and Terms: The Nitty-Gritty Details

When it comes to auto loans, the saying "time is money" really does apply. The average loan term for new and used cars is nearly 68 months—that's almost six years! And with average monthly payments of $738 for new cars and $532 for used, planning your budget is key.

Auto loan balances nationwide have revved up to a whopping $1.61 trillion. Here's a snapshot of what borrowers face in certain states:
 

• In Hawaii, the average monthly payment is a wave-breaking $684.26.
• Over in Mississippi, drivers pay around $729.44 a month.
• Heads up in Alaska, where the average monthly payment climbs to $825.53!

Calculate your potential car payment to see where you might land before diving into a loan.
 

Steering Through Interest Rates

The right terms can make a world of difference. Currently, borrowers are looking at average percentage rates (APRs) from 7.77% to 8.98%, depending on the term length and whether the car is fresh off the lot or has a few miles.

Must Read: How Will Savings Interest Rates Trend in 2024?
 

Delinquency Rates - Paying on Time Matters

Paying late can lead to trouble, and some states see higher delinquency rates than others. Mississippi is at the top of the list with a 6.77% delinquency rate. 

No matter where you live, staying on track with your car payments is crucial.
 

The Secret to a Sweet Loan Deal

Living in a state with high loan balances doesn't mean you're stuck with a clunker of a deal. The trick is to boost your credit score, do some homework on lenders, and find an auto loan that fits your budget. 

And if affordability is an issue, there are loans tailored for bad credit that might be the right fit Learn more about bad credit auto loans.

Remember, a little preparation goes a long way in the auto loan race. So, buckle up and start your engines—it's time to find a loan that's in the driver's seat of affordability!

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