In this article:
- Total US Auto Debt Climbs by 2% to $1.57T
- Average Auto Balances up 2% in 2026
- Auto Loan Balance Growth Nearly Equal Across FICO Score Ranges
- Average Auto Loan Payments Approach $700 Per Month in 2026
- Auto Balances Increase Modestly in Most States
- Average Auto Balances Exceed $30,000 in 3 Texas Metros
- Generation X Continues to Bear Largest Auto Balances
- There Are Still Ways Drivers Can Save
The average auto loan balance among consumers in the U.S. grew to $24,909 as of March 2026, according to Experian data. That's a jump of 2.1% from the average auto loan balance of $24,408 in March 2025.
Although the increase is similar to prior years, the auto market consumers are facing in 2026 bears little resemblance to the car-buying experience of even five years ago—and that's even before one considers the role auto financing plays. Some of the more stark examples of change include:
- New vehicles are more expensive. Just like the housing market, entry-level cars are becoming as scarce as entry-level homes—and when you do find one, you probably won't pay an entry-level price. According to Edmunds, only 5% of all new cars in 2026 are sold for less than $25,000. Compare that to 2019 when one-fifth of a dealer's new car sales were for less than $25,000. The average new car price is still nearly $50,000 in 2026, according to Edmunds. As it's been at this level since 2023, drivers may be looking at the new normal in new car pricing.
- Electric vehicles (EVs) are becoming mainstream. EVs comprise 7% of all new vehicle sales in the U.S., according to Cox Automotive. With about a quarter-million new EVs hitting the road every quarter, used EVs are beginning to accumulate, currently representing about 3% of all used car sales in 2026 but poised to expand further. The average used EV costs about $37,000—not quite a $25,000 car, but less than the average new cost of an EV of $54,000.
- Tax incentives are ever-changing. Consumers no longer have as many financial incentives to purchase an EV in 2026, after a $7,500 tax credit for EV purchases wasn't renewed last year. And even if you were in the market for a gasoline-fueled car, last year's tariffs didn't do any favors for any new car buyer.
Stack on that the cost of auto financing, where elevated rates for both new and used car financing has added to the cost of driving in the U.S. The best new car financing rates are still 3 to 4 percentage points higher than in 2022, which helps to explain a broad focus on monthly payments and the desire to extend loan terms to seven years (84 months) or even longer.
As part of our ongoing coverage of consumer credit and debt, we analyzed anonymized Experian credit data to identify recent trends in auto financing and assess how those trends may continue to impact car buyers in 2026.
Compare now: Current Auto Loan Rates
Total US Auto Debt Climbs by 2% to $1.57T
Longer loan terms and higher financing costs have found their way to the collective added cost of paying for a vehicle. Even if consumers opt for lower monthly payments with a longer-term loan, that means loan balances stay larger for longer, no matter how budget conscious drivers have become.
| 2024 | 2025 | 2026 | Change, 2025-2026 |
|---|---|---|---|
| $1.523T | $1.543T | $1.574T | 2.0% |
Source: Experian data from March of each year
U.S. drivers owed $1.57 trillion on cars, motorcycles and other personal vehicles as of March 2026, according to Experian data, up 2.0%, over the March 2025 balance of $1.54 trillion.
Average Auto Balances up 2% in 2026
Average car loan balances ended March 2026 at $24,909, a 2% increase from the previous year. Ever-increasing loan terms and car prices are contributing to the continued increase in balances, even as most existing loans continue to be paid down.
| 2024 | 2025 | 2026 | Change, 2025-2026 |
|---|---|---|---|
| $24,009 | $24,408 | $24,909 | 2.1% |
Source: Experian data from March of each year
Auto financing rates and costs broadly remain at levels similar to 2025. While the average new car price of around $50,000 may stick around, average loan interest rates for new and used vehicles have also leveled off—likely meaning more of the same for driving costs in 2026.
Average Rates for Auto Loan Financing, 2020-2026
Auto Loan Balance Growth Nearly Equal Across FICO® Score☉ Θ Ranges
Average balances increased at the same rate for drivers regardless of their FICO® Score in 2026. The 2% to 2.3% increases are similar to the nationwide increase of 2.1% over the same period.
| Score Range | 2025 | 2026 | Change |
|---|---|---|---|
| Poor (300-579) | $21,860 | $22,304 | 2.0% |
| Fair (580-669) | $24,995 | $25,517 | 2.1% |
| Good (670-739) | $26,565 | $27,131 | 2.1% |
| Very good (740-799) | $24,982 | $25,531 | 2.2% |
| Exceptional (800-850) | $22,777 | $23,310 | 2.3% |
Source: Experian data from March of each year
Average Auto Loan Payments Approach $700 Per Month in 2026
Average auto loan payments increased by 3.2% over the past year, from an average of $675 in 2025 to $697 per month as of March 2026, according to Experian data. Although the 3.2% increase is slower than other years this decade, it's still growing more than balances themselves.
| 2024 | 2025 | 2026 | Change, 2025-2026 |
|---|---|---|---|
| $646 | $675 | $697 | 3.2% |
Source: Experian data from March of each year
Balances vary by state, however, due in no small part to the differences in the vehicles on the road. In other words, what's being driven in California is vastly different from what's on Texas roads, which in turn is vastly different from the aged fleets in Northeast states. These, among other regional FICO® Score differences, partially explain the variance.
Learn more: Average Car Payment
Average Auto Loan Payment by State
Auto Balances Increase Modestly in Most States
Average loan balances increased in most states in 2026, with the sharpest increases occurring in states with larger rural footprints, like Alaska, Kentucky, New Mexico and West Virginia, where average balances grew by more than 4%.
Average Auto Loan Balance by State
| State | 2025 | 2026 | Change |
|---|---|---|---|
| Alabama | $25,997 | $26,938 | 3.6% |
| Alaska | $27,228 | $28,464 | 4.5% |
| Arizona | $26,651 | $27,206 | 2.1% |
| Arkansas | $27,039 | $28,076 | 3.8% |
| California | $25,108 | $24,895 | -0.8% |
| Colorado | $24,154 | $24,140 | -0.1% |
| Connecticut | $20,251 | $20,543 | 1.4% |
| Delaware | $23,052 | $23,839 | 3.4% |
| District of Columbia | $20,949 | $21,049 | 0.5% |
| Florida | $25,865 | $26,316 | 1.7% |
| Georgia | $26,404 | $27,014 | 2.3% |
| Hawaii | $23,968 | $24,633 | 2.8% |
| Idaho | $25,406 | $25,976 | 2.2% |
| Illinois | $22,972 | $23,424 | 2.0% |
| Indiana | $22,179 | $22,842 | 3.0% |
| Iowa | $22,916 | $23,401 | 2.1% |
| Kansas | $23,888 | $24,795 | 3.8% |
| Kentucky | $23,594 | $24,580 | 4.2% |
| Louisiana | $28,037 | $29,147 | 4.0% |
| Maine | $22,182 | $22,743 | 2.5% |
| Maryland | $24,364 | $24,875 | 2.1% |
| Massachusetts | $19,769 | $20,029 | 1.3% |
| Michigan | $19,437 | $19,754 | 1.6% |
| Minnesota | $21,350 | $21,802 | 2.1% |
| Mississippi | $26,132 | $27,166 | 4.0% |
| Missouri | $22,945 | $23,805 | 3.7% |
| Montana | $24,120 | $24,689 | 2.4% |
| Nebraska | $22,491 | $22,816 | 1.4% |
| Nevada | $26,876 | $27,320 | 1.7% |
| New Hampshire | $21,259 | $21,677 | 2.0% |
| New Jersey | $21,374 | $21,182 | -0.9% |
| New Mexico | $29,353 | $30,583 | 4.2% |
| New York | $21,477 | $21,622 | 0.7% |
| North Carolina | $24,324 | $24,951 | 2.6% |
| North Dakota | $25,581 | $26,084 | 2.0% |
| Ohio | $21,248 | $21,880 | 3.0% |
| Oklahoma | $27,175 | $28,246 | 3.9% |
| Oregon | $22,494 | $22,989 | 2.2% |
| Pennsylvania | $21,282 | $21,878 | 2.8% |
| Rhode Island | $19,666 | $19,895 | 1.2% |
| South Carolina | $24,207 | $25,042 | 3.5% |
| South Dakota | $23,449 | $23,738 | 1.2% |
| Tennessee | $25,666 | $26,508 | 3.3% |
| Texas | $29,996 | $30,939 | 3.1% |
| Utah | $24,055 | $24,294 | 1.0% |
| Vermont | $21,433 | $22,121 | 3.2% |
| Virginia | $23,691 | $24,243 | 2.3% |
| Washington | $24,843 | $24,977 | 0.5% |
| West Virginia | $26,338 | $27,598 | 4.8% |
| Wisconsin | $21,145 | $21,804 | 3.1% |
| Wyoming | $27,939 | $28,826 | 3.2% |
Source: Experian data from March of each year
Average auto loan balances declined in three states: California, Colorado and New Jersey.
Average car loan balances eclipsed $30,000 in Texas, which routinely carries the largest car loan balances in the nation (more on Texas shortly). Michigan and Rhode Island remain the two states where typical car loan balances are still less than $20,000.
Average Auto Balances Exceed $30,000 in 3 Texas Metros
Among the 100 largest U.S. metros in the U.S., average auto loan balances range from a low of $19,022 in Detroit to as high as $38,739 in McAllen, Texas, in 2026. And while most metros saw increases in auto loan balances, 11 of these metros have lower average auto loan balances than in 2025.
Average Auto Loan Balance by Metro
| Metro | 2025 | 2026 | Change |
|---|---|---|---|
| New York City | $21,898 | $21,564 | -1.5% |
| Los Angeles | $24,521 | $24,138 | -1.6% |
| Chicago | $22,900 | $23,221 | 1.4% |
| Dallas | $28,099 | $28,740 | 2.3% |
| Houston | $29,484 | $30,294 | 2.7% |
| Miami | $26,041 | $25,938 | -0.4% |
| Washington, D.C. | $24,668 | $24,937 | 1.1% |
| Atlanta | $25,886 | $26,224 | 1.3% |
| Philadelphia | $21,220 | $21,592 | 1.8% |
| Boston | $19,961 | $20,107 | 0.7% |
| Phoenix, Arizona | $26,674 | $27,114 | 1.7% |
| San Francisco | $24,057 | $23,472 | -2.4% |
| Riverside, California | $27,177 | $27,058 | -0.4% |
| Detroit | $18,884 | $19,022 | 0.7% |
| Seattle | $24,727 | $24,623 | -0.4% |
| Minneapolis—Saint Paul | $21,300 | $21,707 | 1.9% |
| Tampa, Florida | $25,731 | $26,406 | 2.6% |
| San Diego | $24,193 | $24,186 | 0.0% |
| Denver | $23,319 | $23,069 | -1.1% |
| Orlando, Florida | $24,958 | $25,317 | 1.4% |
| St. Louis | $22,840 | $23,720 | 3.9% |
| Baltimore | $23,692 | $24,290 | 2.5% |
| San Antonio | $29,953 | $31,014 | 3.5% |
| Portland, Oregon | $22,057 | $22,217 | 0.7% |
| Austin, Texas | $27,663 | $28,141 | 1.7% |
| Sacramento, California | $24,043 | $23,973 | -0.3% |
| Pittsburgh | $21,217 | $21,975 | 3.6% |
| Las Vegas | $26,820 | $27,100 | 1.0% |
| Charlotte, North Carolina | $24,144 | $24,677 | 2.2% |
| Kansas City, Missouri | $23,537 | $24,189 | 2.8% |
| Cincinnati | $22,444 | $22,981 | 2.4% |
| San Jose, California | $24,708 | $23,923 | -3.2% |
| Cleveland | $19,878 | $20,588 | 3.6% |
| Columbus, Ohio | $21,806 | $22,365 | 2.6% |
| Indianapolis | $22,949 | $23,512 | 2.5% |
| Nashville, Tennessee | $25,046 | $25,654 | 2.4% |
| Jacksonville, Florida | $26,296 | $27,063 | 2.9% |
| Virginia Beach, Virginia | $23,434 | $24,090 | 2.8% |
| Providence, Rhode Island | $19,679 | $19,940 | 1.3% |
| Raleigh, North Carolina | $24,016 | $24,274 | 1.1% |
| Milwaukee | $20,695 | $21,271 | 2.8% |
| Richmond, Virginia | $22,185 | $22,827 | 2.9% |
| Oklahoma City | $26,592 | $27,439 | 3.2% |
| Louisville, Kentucky | $22,505 | $23,251 | 3.3% |
| Salt Lake City | $23,167 | $23,310 | 0.6% |
| Memphis, Tennessee | $25,646 | $26,452 | 3.1% |
| Hartford, Connecticut | $19,566 | $19,895 | 1.7% |
| New Orleans | $25,500 | $26,426 | 3.6% |
| Buffalo, New York | $19,255 | $19,682 | 2.2% |
| Birmingham, Alabama | $25,226 | $26,245 | 4.0% |
| Rochester, New York | $19,263 | $19,725 | 2.4% |
| Tucson, Arizona | $24,317 | $24,814 | 2.0% |
| Sarasota, Florida | $25,431 | $26,202 | 3.0% |
| Bridgeport, Connecticut | $21,778 | $21,967 | 0.9% |
| Omaha, Nebraska | $22,630 | $22,715 | 0.4% |
| Tulsa, Oklahoma | $25,813 | $26,858 | 4.0% |
| Honolulu | $23,402 | $24,018 | 2.6% |
| Allentown, Pennsylvania | $20,978 | $21,212 | 1.1% |
| Cape Coral, Florida | $26,135 | $26,597 | 1.8% |
| Albany, New York | $20,225 | $20,821 | 2.9% |
| Albuquerque, New Mexico | $26,726 | $27,612 | 3.3% |
| Lakeland, Florida | $26,211 | $27,097 | 3.4% |
| Fresno, California | $26,196 | $26,558 | 1.4% |
| New Haven, Connecticut | $19,432 | $19,572 | 0.7% |
| Worcester, Massachusetts | $20,237 | $20,519 | 1.4% |
| Dayton, Ohio | $21,657 | $22,269 | 2.8% |
| Boise, Idaho | $24,664 | $25,183 | 2.1% |
| Oxnard, California | $24,722 | $24,620 | -0.4% |
| Columbia, South Carolina | $24,926 | $25,533 | 2.4% |
| El Paso, Texas | $30,165 | $31,047 | 2.9% |
| Charleston, South Carolina | $24,233 | $24,845 | 2.5% |
| Greenville, South Carolina | $23,584 | $24,589 | 4.3% |
| Knoxville, Tennessee | $26,113 | $27,063 | 3.6% |
| Grand Rapids, Michigan | $19,144 | $19,600 | 2.4% |
| Colorado Springs, Colorado | $25,428 | $25,750 | 1.3% |
| Bakersfield, California | $27,496 | $27,735 | 0.9% |
| Greensboro, North Carolina | $22,962 | $23,561 | 2.6% |
| Baton Rouge, Louisiana | $28,358 | $29,570 | 4.3% |
| Stockton, California | $26,024 | $25,598 | -1.6% |
| Akron, Ohio | $19,916 | $20,553 | 3.2% |
| Little Rock, Arkansas | $27,022 | $28,029 | 3.7% |
| McAllen, Texas | $36,766 | $38,739 | 5.4% |
| Palm Bay, Florida | $24,750 | $25,663 | 3.7% |
| Poughkeepsie, New York | $21,597 | $22,001 | 1.9% |
| Des Moines, Iowa | $23,976 | $24,367 | 1.6% |
| Madison, Wisconsin | $20,215 | $20,661 | 2.2% |
| Springfield, Massachusetts | $18,925 | $19,605 | 3.6% |
| Deltona, Florida | $25,407 | $25,791 | 1.5% |
| Provo, Utah | $24,288 | $24,588 | 1.2% |
| Syracuse, New York | $20,562 | $21,374 | 3.9% |
| Ogden, Utah | $23,816 | $23,995 | 0.8% |
| Harrisburg, Pennsylvania | $21,031 | $21,450 | 2.0% |
| Portland, Maine | $21,016 | $21,460 | 2.1% |
| Toledo, Ohio | $20,551 | $20,913 | 1.8% |
| Wichita, Kansas | $24,270 | $25,346 | 4.4% |
| Augusta, Georgia | $26,734 | $27,553 | 3.1% |
| Port St. Lucie, Florida | $26,348 | $26,738 | 1.5% |
| Durham, North Carolina | $22,099 | $22,383 | 1.3% |
| Chattanooga, Tennessee | $25,163 | $25,902 | 2.9% |
| Fayetteville, Arkansas | $26,631 | $27,474 | 3.2% |
| Scranton, Pennsylvania | $21,315 | $21,986 | 3.1% |
Source: Experian data from March of each year
Auto loan balances increased the most in a handful of Southern state metros, but none as much as in McAllen, Texas, which sports not only the biggest jump in average auto loan balances, but also an average loan balance of $38,700—$12,000 greater than the national average.
| Metro | 2025 | 2026 | Change |
|---|---|---|---|
| McAllen, Texas | $36,766 | $38,739 | 5.4% |
| Wichita, Kansas | $24,270 | $25,346 | 4.4% |
| Baton Rouge, Louisiana | $28,358 | $29,570 | 4.3% |
| Greenville, South Carolina | $23,584 | $24,589 | 4.3% |
| Tulsa, Oklahoma | $25,813 | $26,858 | 4.0% |
| Birmingham, Alabama | $25,226 | $26,245 | 4.0% |
Source: Experian data from March of each year
Meanwhile, similar to what was observed in the state-level data, average balances are beginning to decline in metros with above-average EV registrations, with balances falling as much as 3.2% in the San Jose, California, technopolis.
As the $7,500 tax credit for new EV purchases expired last year, fewer new EVs are being sold (they have higher than average costs than gasoline-fuelled vehicles), and current EV drivers may be hanging on to their current EV longer, which for some will have low or perhaps no auto loan at all attached to the Prius, Model Y or Ioniq 5.
| Metro | 2025 | 2026 | Change |
|---|---|---|---|
| San Jose, California | $24,708 | $23,923 | -3.20% |
| San Francisco | $24,057 | $23,472 | -2.40% |
| Los Angeles | $24,521 | $24,138 | -1.60% |
| Stockton, California | $26,024 | $25,598 | -1.60% |
| New York City | $21,898 | $21,564 | -1.50% |
| Denver | $23,319 | $23,069 | -1.10% |
| Miami | $26,041 | $25,938 | -0.40% |
| Oxnard, California | $24,722 | $24,620 | -0.40% |
| Seattle | $24,727 | $24,623 | -0.40% |
| Riverside, California | $27,177 | $27,058 | -0.40% |
| Sacramento, California | $24,043 | $23,973 | -0.30% |
Source: Experian data from March of each year
Generation X Continues to Bear Largest Auto Balances
Most generations saw increases in auto balances that were similar to the overall nationwide annual increase of 2.5%. The exception is a little relief for Generation X drivers, whose balances remain the highest of any generation despite seeing the smallest percent growth in 2026.
| Generation | 2023 | 2024 | Change |
|---|---|---|---|
| Generation Z (18-29) | $20,722 | $21,241 | 2.5% |
| Millennials (30-45) | $25,081 | $25,725 | 2.6% |
| Generation X (46-61) | $27,679 | $28,081 | 1.4% |
| Baby boomers (62-80) | $22,363 | $22,939 | 2.6% |
| Silent Generation (81+) | $16,972 | $17,408 | 2.6% |
Source: Experian data from March of each year; ages as of 2026
Gen X has, by far, the largest auto balances among the generation of drivers, at around $28,000 in 2026 versus the national average of around $25,000. Unsurprising, as Gen X is more likely to be a generation with not only children, but children with drivers licences, versus other generations, leading to a demand for larger and/or multiple vehicles.
There Are Still Ways Drivers Can Save
With seemingly the cost of every input related to driving has skyrocketed in the past few years, there are still opportunities to find savings.
Insurance Premiums Are Moderating, if Drivers Are Willing to Shop Around
According to data in Experian's auto insurance marketplace, auto insurance premiums have begun to level off in 2026. But drivers don't need to be content with their current insurance carrier just because there was no increase to renew your auto premium: By shopping for alternative coverage, drivers may be able to save up to hundreds of dollars for auto insurance coverage.
Average Auto Premiums in the U.S.
Improved Credit Scores May Provide Some Relief
Despite cost increases, auto loans remain accessible for many. More consumers have good credit or better, and auto refinancing is becoming more common. Longer-term auto loans offer drivers more opportunities to refinance their current loan by improving one's FICO® Score, or by refinancing when rates are lower—especially if the original financing was done when rates were high.
Although consumers have limited ability to control or anticipate the rapid economic shifts affecting auto financing, one factor remains consistent: creditworthiness. For consumers who finance their transportation, good credit scores generally lead to lower APRs. In the end, a good FICO® Score may be one of the most valuable bargaining tools car buyers have this year.
Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
FICO® is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.