10 states where car loan debt is falling the most
Falling debt could be a sign of people scaling back their purchases due to the rising price of cars, one analyst said
America is one of the most car-dependent countries in the world, leaving its residents with a collective $1.7 trillion in auto debt. That means the average household in the fourth quarter of 2024 had almost $13,800 in auto loan debt, which is just shy of the record.
WalletHub looked at the average change in auto loan debt, the average auto loan balance, and the average monthly payments in all 50 states to find the states where auto debt is decreasing the most.
“From Q3 2024 to Q4 2024, residents of most states either had a less than 1% decrease in their average auto loan balance, or actually had that average increase,” said WalletHub editor Joe Kiernan. “A few states had more dramatic decreases, reaching over 3.5%, indicating that residents in some states may be scaling back due to the impact of rising car prices or realizing that their loan burdens are unsustainable.”
Continue reading to see which states are tackling their auto debt head on.
2 / 11
10th biggest decrease: New Jersey
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9th biggest decrease: Louisiana
4 / 11
8th biggest decrease: Nevada
5 / 11
7th biggest decrease: Arizona
6 / 11
6th biggest decrease: Texas
7 / 11
5th biggest decrease: Florida
8 / 11
4th biggest decrease: California
9 / 11
3rd biggest decrease: Montana
10 / 11
2nd biggest decrease: Alaska
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Biggest decrease: Wyoming
