Oct 11, 2026

10 States With the Highest Auto Loan Costs in 2026 — Up to Nearly $9K a Year

Owning a vehicle is becoming increasingly expensive, and for millions of Americans, the monthly car payment is only part of the burden. A recent Integra Credit report found that the average driver with an auto loan spends $6,197 annually on loan payments and interest combined. But in some states, that total climbs dramatically higher.

Auto loan costs vary significantly based on where you live, and borrowers in several Southern states face some of the highest annual financing costs in the country. With many Americans already stretching budgets to cover transportation expenses, even small differences in loan balances or interest expenses can add hundreds of dollars to annual vehicle costs.

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Here's a look at the 10 states where auto loan costs are the highest in 2026.

1. Texas

Average yearly auto loan (as of 2024 Q4): $7,920
Estimated yearly interest: $767
Total auto loan + interest: $8,687

2. Louisiana

Average yearly auto loan (as of 2024 Q4): $6,890
Estimated yearly interest: $701
Total auto loan + interest: $7,591

3. New Mexico

Average yearly auto loan (as of 2024 Q4): $6,780
Estimated yearly interest: $643
Total auto loan + interest: $7,423

4. Georgia

Average yearly auto loan (as of 2024 Q4): $6,530
Estimated yearly interest: $683
Total auto loan + interest: $7,213

5. Florida

Average yearly auto loan (as of 2024 Q4): $6,560
Estimated yearly interest: $618
Total auto loan + interest: $7,178

6. North Dakota

Average yearly auto loan (as of 2024 Q4): $6,630
Estimated yearly interest: $538
Total auto loan + interest: $7,168

7. Mississippi

Average yearly auto loan (as of 2024 Q4): $6,470
Estimated yearly interest: $685
Total auto loan + interest: $7,155

8. Arkansas

Average yearly auto loan (as of 2024 Q4): $6,330
Estimated yearly interest: $601
Total auto loan + interest: $6,931

9. West Virginia

Average yearly auto loan (as of 2024 Q4): $6,320
Estimated yearly interest: $565
Total auto loan + interest: $6,885

10. Alabama

Average yearly auto loan (as of 2024 Q4): $6,220
Estimated yearly interest: $634
Total auto loan + interest: $6,854

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Written by

Gabrielle Olya

Edited by

Brendan McGinley