Money Matters - Where Auto Loan Rates are Increasing the Most

 With average auto loan interest rates rising by up to 2.3% between Q1 and Q2 2025, and the recent Federal Reserve rate cut expected to ease APRs in the future, the personal-finance company WalletHub today released its latest report on the States Where Auto Loan Interest Rates Are Increasing the Most, using proprietary user data.

 

Increasing the Most	Increasing the Least
1. Wyoming	41. Tennessee
2. Vermont	42. Illinois
3. Washington	43. Rhode Island
4. Minnesota	44. Massachusetts
5. South Dakota	45. California
6. South Carolina	46. Idaho
7. Colorado	47. Maine
8. Mississippi	48. Delaware
9. Nevada	49. Michigan
10. Pennsylvania	50. Alaska

 
For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/states-auto-loan-interest-rates-change/142747

 

“Auto loans are unfortunately a necessity for many Americans, but there are plenty of good ways to decrease the amount of interest you’ll need to pay. For example, you can compare multiple loan offers, and buy a used vehicle or make a large down payment. Prior to buying a car, you should also practice good financial behavior with other types of credit, like credit cards, as better credit scores lead to lower interest rates. Finally, you can always refinance your car loan in the future to lower your interest rate.”
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“Residents of Wyoming saw the biggest increase in auto loan interest rates from Q1 2025 to Q2 2025, with the average rising by around 2.3%. That brought the average interest rate overall to 9.5%. The good news is that even with the large increase, Wyoming residents pay much less on their auto loans than people in many other states. In fact, their average interest rate in Q2 2025 was the 13th-lowest in the nation.”

- Chip Lupo, WalletHub Analyst                            


More From WalletHub

• Auto Loan Statistics
• States Where Auto Loan Debt Is Decreasing the Most
• States Where Auto Loan Delinquency Is Increasing the Most
• Cities Where Auto Loan Debt Is Increasing the Most
• States Where Consumers Are Adding the Most Debt
• States Where People Are the Most Delinquent on Debt