These Are the Most (and Least) Expensive Cities for Auto Loans
Driving Up Costs
Auto loan interest rates are near their highest levels over the past eight years and nearly 84% of people who buy new cars do so with some type of financing. So it may not come as a surprise that auto loan bills “account for 10.8% of the $4.6 trillion spent on household bills per year”, according to a recent study by doxoINSIGHTS. It’s no wonder some people consider buying a car a waste of money.
Related: Signs the Car Dealership Is Ripping You Off
Methodology
To determine the average auto loan costs for the top 50 largest cities by the number of households, doxoINSIGHTS used anonymous bill pay data. Data from over 7 million customers covering 97% of the United States' geography was analyzed to determine payment amounts. The study data uses an economically representative sample to give an accurate picture of what is average, but some individuals may have much higher or lower auto loan balances. Here are the major cities where auto loans are the lowest and highest.
Related: Warning Signs You Need a New Car
Overall Auto Loan Spending
The market size of the entire auto loan industry in the United States is $493 billion. After mortgage or rent payments, auto loans make up the largest single category of spending for Americans with a nationwide auto loan average of $433. A total of 73% of households have an auto loan which costs an average of $3,793 each year when accounting for households without this debt.
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10th Least Expensive: Orlando, Florida
Average Auto Loan: $404
Percent of People With An Auto Loan: 72%
About an average number of Orlando residents have an auto loan but they have an average monthly payment that is $33 less per month than the nationwide average.
9th: Oklahoma City
Average Auto Loan: $399
Percent of People With An Auto Loan: 72%
At just shy of $400 a month, residents of Oklahoma City still pay $0.94 billion total each year.
8th: Cincinnati
Average Auto Loan: $384
Percent of People With An Auto Loan: 72%
7th: St. Louis
Average Auto Loan: $382
Percent of People With An Auto Loan: 68%
A lower percentage of St. Louis residents have an auto loan compared to the nation as a whole. It is also lower than the statewide rate of 76%.
6th: Baltimore
Average Auto Loan: $377
Percent of People With An Auto Loan: 83%
The average cost for an auto loan in all of Maryland is $407 so those who live in Baltimore have a lower monthly bill compared to those around them.
5th: San Francisco
Average Auto Loan: $363
Percent of People With An Auto Loan: 53%
The average monthly payment for people with a loan is likely much higher than $363 since just over half of people have a loan at all. Many San Franciscans don’t own a car at all which contributes to the low rates of auto loans compared to other cities.
4th: Minneapolis
Average Auto Loan: $362
Percent of People With An Auto Loan: 70%
Minneapolis residents had the lowest auto insurance rates compared to other large cities besides having less expensive auto loans.
3rd: Pittsburgh
Average Auto Loan: $334
Percent of People With An Auto Loan: 75%
2nd: Buffalo, New York
Average Auto Loan: $327
Percent of People With An Auto Loan: 74%
Least Expensive: Rochester, New York
Average Auto Loan: $314
Percent of People With An Auto Loan: 77%
Compared to residents of New York City, Rochester residents have a much lower monthly auto loan payment. In fact, they pay $232 less per month than those in the Big Apple.
Least Expensive: Rochester, New York
Average Auto Loan: $314
Percent of People With An Auto Loan: 77%
Compared to residents of New York City, Rochester residents have a much lower monthly auto loan payment. In fact, they pay $232 less per month than those in the Big Apple.
10th Most Expensive: Colorado Springs, Colorado
Average Auto Loan: $481
Percent of People With An Auto Loan: 73%
The average loan payment in Colorado Springs is nearly $50 more than the national average which over the course of a year can really add up.
9th: Austin, Texas
Average Auto Loan: $489
Percent of People With An Auto Loan: 79%
Austin is one of the most expensive cities for car ownership overall since it also ranks 10th for most expensive auto insurance.
8th: Miami
Average Auto Loan: $503
Percent of People With An Auto Loan: 77%
Miami ranks second for most expensive insurance at $370 a month according to doxoINSIGHTS. That means an average resident pays nearly $900 a month just for their car.
7th: Houston
Average Auto Loan: $505
Percent of People With An Auto Loan: 71%
6th: Las Vegas
Average Auto Loan: $512
Percent of People With An Auto Loan: 74%
Auto loans in Las Vegas are high and it also ranks among the worst cities for car theft.
5th: Los Angeles
Average Auto Loan: $524
Percent of People With An Auto Loan: 75%
4th: Sacramento, California
Average Auto Loan: $535
Percent of People With An Auto Loan: 75%
Residents of Sacramento catch a bit of a break on their car ownership costs since it ranks 4th least expensive for auto insurance.
3rd: New York
Average Auto Loan: $546
Percent of People With An Auto Loan: 67%
New Yorkers have the highest auto insurance rates according to doxoINSIGHTS. This leads to a total cost for the loan and insurance that is nearly $1000 a month.
2nd: Kansas City, Missouri
Average Auto Loan: $547
Percent of People With An Auto Loan: 49%
Of all the large cities, Kansas City, Missouri has the lowest rate of residents with auto loans. So although the average loan balance is high, more than half of residents aren’t paying this kind of bill.
Most Expensive: San Jose, California
Average Auto Loan: $584
Percent of People With An Auto Loan: 76%
A 2021 report by Lending Tree shows that residents of San Jose, on average, take out shorter term vehicle loans than in other places. The higher incomes in this area support a quicker pay off with a higher monthly payment for many residents.
