Americans owe a collective $1.6 trillion in auto loan debt, and that number looks to continue rising, with the average bank currently financing car loans at 8%.
But when you look at the data by state, as WalletHub did, the numbers paint a more complex picture. While interest rates on cars are increasing rapidly in some states, in a select few others, rates are actually decreasing.
“Auto loans are unfortunately a necessity for many Americans, but there are plenty of good ways to decrease the amount of interest you’ll need to pay,” Chip Lupo, a WalletHub analyst, said in a statement. Lupo suggested comparing multiple loan offers before choosing one, and said if you see rates decreasing to not forget you can always refinance your loan.
WalletHub compared proprietary user data from Q2 2024 with data from Q3 2024 to see the states where auto loan interest rates increased the most and the least. Check out the results:
