Average Car Payment by State in 2026

· Updated

Car payments are the second-largest monthly expense for many Americans after housing. Here’s how auto loan payments vary across the country.

Table of Contents

Average Car Payment Overview (2026)

Metric New Car Used Car
Average monthly payment $734 $525
Average loan amount $40,200 $25,800
Average interest rate 6.8% 9.9%
Average loan term 68 months 66 months
Average down payment 11% 9%

Average Car Payment by State

State New Car Payment Used Car Payment Average Insurance
Alabama $705 $510 $175
Alaska $795 $575 $145
Arizona $720 $520 $165
Arkansas $680 $495 $155
California $745 $540 $195
Colorado $750 $535 $170
Connecticut $715 $515 $185
Delaware $700 $505 $170
Florida $735 $530 $210
Georgia $710 $515 $185
Hawaii $685 $500 $140
Idaho $695 $505 $140
Illinois $720 $520 $170
Indiana $690 $500 $150
Iowa $675 $490 $130
Kansas $685 $500 $145
Kentucky $680 $495 $165
Louisiana $710 $515 $220
Maine $670 $490 $130
Maryland $725 $525 $175
Massachusetts $710 $515 $165
Michigan $715 $520 $205
Minnesota $695 $505 $145
Mississippi $685 $500 $175
Missouri $690 $500 $160
Montana $780 $560 $140
Nebraska $690 $500 $140
Nevada $725 $525 $175
New Hampshire $690 $500 $130
New Jersey $730 $530 $190
New Mexico $695 $505 $160
New York $720 $520 $195
North Carolina $700 $510 $150
North Dakota $705 $510 $135
Ohio $690 $500 $150
Oklahoma $700 $510 $165
Oregon $710 $515 $145
Pennsylvania $705 $510 $160
Rhode Island $700 $505 $175
South Carolina $700 $510 $170
South Dakota $690 $500 $130
Tennessee $710 $515 $155
Texas $760 $545 $175
Utah $710 $515 $145
Vermont $680 $495 $130
Virginia $710 $515 $155
Washington $740 $535 $155
West Virginia $675 $490 $160
Wisconsin $685 $500 $135
Wyoming $735 $530 $135

States With the Highest Car Payments

Rank State New Car Payment Key Factor
1 Alaska $795 Higher vehicle prices, truck preference
2 Montana $780 Truck/SUV preference, rural distances
3 Texas $760 Truck culture, long commutes
4 Colorado $750 SUV/AWD preference, higher incomes
5 California $745 Higher vehicle prices, longer commutes

States With the Lowest Car Payments

Rank State New Car Payment Key Factor
1 Maine $670 Lower vehicle prices, fewer luxury purchases
2 Iowa $675 Lower cost of living
3 West Virginia $675 Lower income area, more used car purchases
4 Arkansas $680 Lower cost of living
5 Kentucky $680 Lower vehicle prices

How Much Car Can You Afford?

Monthly Take-Home Pay Max Recommended Payment (15%) Max with Insurance (20%)
$3,000 $450 $600 total
$4,000 $600 $800 total
$5,000 $750 $1,000 total
$6,000 $900 $1,200 total
$7,500 $1,125 $1,500 total

For a more detailed breakdown, see our car affordability calculator and guide on how much should I spend on a car.

Total Cost of Car Ownership by State

A car payment is just one component. Here’s the total cost of owning a car including insurance, fuel, and maintenance:

State Monthly Payment Insurance Fuel Maintenance Total Monthly
Texas $760 $175 $180 $100 $1,215
California $745 $195 $220 $110 $1,270
Florida $735 $210 $170 $100 $1,215
New York $720 $195 $190 $115 $1,220
Iowa $675 $130 $150 $90 $1,045
Year New Car Payment Used Car Payment Average Rate (New)
2020 $568 $397 4.2%
2021 $585 $420 3.9%
2022 $648 $503 5.0%
2023 $716 $523 7.0%
2024 $730 $528 6.9%
2025 $733 $526 6.8%
2026 $734 $525 6.8%

Car payments jumped 29% between 2020 and 2026, driven by higher vehicle prices and rising interest rates.

How to Lower Your Car Payment

Strategy Savings
Buy used (1-3 years old) Save $200+/month
Larger down payment Reduce loan amount significantly
Shorter loan term Higher payment but less total interest
Improve credit score Better rate — even 1% saves thousands
Refinance existing loan Can reduce rate if credit improved
Consider leasing vs buying Lower monthly but no equity

Bottom Line

The average car payment now exceeds $700/month for new vehicles, making car affordability a growing concern. Focus on keeping total transportation costs under 15-20% of take-home pay, consider buying used, and shop around for the best auto loan rates.

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