MIAMI—U.S. auto loan balances continue to climb, with total outstanding debt approaching $1.7 trillion and the average household owing roughly $13,800 as of the second quarter of 2025—just shy of a record high, according to new data from WalletHub.
The pace of borrowing, however, varies significantly across the country. WalletHub’s latest analysis of proprietary consumer credit data shows wide differences in how quickly auto loan balances are rising by state, underscoring the uneven nature of consumer debt pressures nationwide.
The report identifies the states where borrowers are taking on auto debt at the fastest clip, as well as those experiencing more modest increases.
“From Q1 2025 to Q2 2025, residents of most states either had a less than 1% increase in their average auto loan balance, or actually had that average decrease,” explained John Kiernan, WalletHub editor. “A few states had more dramatic increases, reaching nearly 2.4%, which suggests that people in some states are more affected by inflation in car prices or are biting off more than they can chew when it comes to loans.”
Vermont
Vermont residents have seen the highest increase in their average auto loan balance, which now stands at $21,792, reaching that number after increasing their average by over 1.8% between Q1 2025 and Q2 2025. Vermont residents pay the ninth-highest monthly auto loan amount, averaging $539, the climb underscores the growing financial strain of vehicle debt in the state.
One bright side for Vermont car owners is that while their auto loan balances are increasing, the state still ranks 22nd in the nation for overall car ownership and maintenance costs. This slightly above average ranking eases some of the pressure from higher monthly payments, WalletHub explained.
Delaware
People in Delaware have a relatively low average auto loan balance compared to most states, at $19,767. However, their debt increased by nearly 2.4% between Q1 2025 and Q2 2025, marking the biggest increase nationwide. Delaware residents pay an average of $486 per month toward their auto loan debt.
“To put things in perspective, the average auto loan balance increased by well below 1% in most states, and it actually decreased in 15 of them,” WalletHub noted. “Delaware’s surge in auto loan debt points to broader financial distress, with the state now ranking 14th nationally. Rising costs of living and heavier financial obligations may be leaving residents with little flexibility, pushing auto loan balances higher.”
New Mexico
The average auto loan balance for New Mexico residents increased by around 1.1% between Q1 2025 and Q2 2025. That brought the average dollar amount to $22,133, the fifth-highest in the country.
New Mexico residents’ behavior with auto loans differs slightly from their habits when it comes to credit cards, as they have the 21st-lowest average household credit card debts.
“Overall, people in New Mexico seem to be managing their borrowing more cautiously. The state has a very low number of people with accounts in financial distress, meaning fewer residents have had to defer payments due to financial difficulty,” WalletHub added.