10 States Where the Most Drivers Are Paying $1,000 or More on Monthly Car Payments
If you’re in the market for a new or used car, you’ve probably noticed the cost of driving isn’t what it used to be. According to Experian, more drivers are spending $1,000 or more per month on their monthly car payments in 2024.
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As of June 2024, the average auto loan payment was $655 — up from $619 in 2023, and $579 in 2022. The percentage of drivers paying $1,000 or more on their loan has also increased significantly, from 1.1% in 2020 to 4.2% in 2024, per Experian data.
The Federal Reserve has cut interest rates for the first time in more than four years, but according to Kelley Blue Book, the effects could take time to reach car shoppers.
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New car prices have fallen recently — $47,870 on average — but not consistently across every brand, per KBB. Used car prices have dropped 6% year-over-year to $25,172, but KBB says they may fluctuate this fall.
Despite recent price drops, the percentage of drivers paying $1,000 or more on their monthly auto loan continues to rise. Experian says one factor is when these loans were originated. Most auto loans with these balances were made several years ago when fewer drivers had bargaining power at the dealership.
Another reason for higher payments is the sales prices of these cars. Prices are decelerating, but new and used car prices are still higher across the board. Also, trade-in values today aren’t as good as they were during the pandemic when automakers and dealerships were dealing with supply disruptions.
Based on Experian’s findings, states where drivers are putting more miles on their vehicles often have more expensive monthly car loan payments. Texas leads the pack, with 6.9% of drivers with loans paying $1,000 or more each month — over a full percentage point more than No. 2 on the list.
According to Experian, here are 10 states where the most drivers are paying $1,000 or more on their auto loans.
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Texas
% of auto loans with $1,000+ monthly payments: 6.9%
Average monthly auto loan payment: $777
Wyoming
% of auto loans with $1,000+ monthly payments: 5.7%
Average monthly auto loan payment: $723
Nevada
% of auto loans with $1,000+ monthly payments: 5.5%
Average monthly auto loan payment: $695
Louisiana
% of auto loans with $1,000+ monthly payments: 5.4%
Average monthly auto loan payment: $726
Georgia
% of auto loans with $1,000+ monthly payments: 5.3%
Average monthly auto loan payment: $697
California
% of auto loans with $1,000+ monthly payments: 5.2%
Average monthly auto loan payment: $687
Washington
% of auto loans with $1,000+ monthly payments: 5.2%
Average monthly auto loan payment: $652
Colorado
% of auto loans with $1,000+ monthly payments: 5.1%
Average monthly auto loan payment: $657
North Dakota
% of auto loans with $1,000+ monthly payments: 5.0%
Average monthly auto loan payment: $687
Alaska
% of auto loans with $1,000+ monthly payments: 4.9%
Average monthly auto loan payment: $679
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This article originally appeared on GOBankingRates.com: 10 States Where the Most Drivers Are Paying $1,000 or More on Monthly Car Payments