MIAMI—As car buyers grapple with soaring borrowing costs, new data from WalletHub shows just how uneven—and steep—the climb has been.
WalletHub released its latest report on the States Where Auto Loan Interest Rates Are Increasing the Most.
Between the first and second quarters of 2025, average auto loan rates jumped as much as 2.3% nationwide, even as the Federal Reserve’s recent rate cut offered a glimmer of relief ahead.
Americans now owe nearly $1.7 trillion in auto loans—about $14,000 per household—with average new-car APRs topping 8% at commercial banks and more than 6% at other finance companies, WalletHub reported. But not every driver is paying the same price: the site’s latest analysis ranks all 50 states by how sharply interest rates rose from Q1 to Q2, revealing where borrowers are feeling the squeeze the most. See rankings below.