Tuesday, June 10, 2025

Money Matters - Where is Auto Loan Debt Increasing?

 With the average American household owing nearly $14,000 in auto loan debt and the nationwide total reaching over $1.64 trillion, the personal-finance website WalletHub has released an updated report highlighting the Cities Where Auto Loan Debt Is Increasing the Most. The rankings are based on WalletHub’s proprietary consumer debt data, comparing changes in auto loan debt from Q4 2024 to Q1 2025.

 
Biggest IncreaseSmallest Increase
1. Irvine, CA91. Glendale, AZ
2. Irving, TX92. Louisville, KY
3. Fort Wayne, IN93. Cleveland, OH
4. Hialeah, FL94. Durham, NC
5. Henderson, NV95. Aurora, CO
6. Scottsdale, AZ96. Denver, CO
7. North Las Vegas, NV97. Madison, WI
8. Fremont, CA98. Chandler, AZ
9. Fresno, CA99. Anaheim, CA
10. Albuquerque, NM100. Winston-Salem, NC
 
For the full report, please visit:
https://wallethub.com/edu/cities-where-auto-loan-debt-is-increasing-the-most/136194
 

“A big increase in auto loan debt in a city can either show that residents are experiencing financial difficulty because they need to borrow more, or that residents are responsible because they can qualify for larger loan amounts. In most of the top 10 cities driving up auto debt, the extra debt is a bad sign because those cities tend to have high debt delinquency rates and a lot of people experiencing financial distress.”
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“Irvine, CA, residents increased their average auto loan balance by over 2.9% between Q4 2024 and Q1 2025, the third-largest increase in the country. This brought the average auto loan balance in the city to $23,876 and the average monthly payment to $616.”

- Chip Lupo, WalletHub Analyst
 

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