Money Matters - Auto Loan Interest Rates

With the average interest rate on auto loans rising by as much as 2.2% between Q1 2026 and Q2 2026, and the Federal Reserve’s recent 25 basis points rate hike, the personal-finance company WalletHub today released its updated report on the States Where Auto Loan Interest Rates Are Increasing the Most, based on proprietary user data.
 

Increasing the Most	Increasing the Least
1. North Dakota	41. Utah
2. Maine	42. New Mexico
3. New Hampshire	43. Michigan
4. Vermont	44. Minnesota
5. Idaho	45. Delaware
6. North Carolina	46. Washington
7. Arizona	47. Alaska
8. West Virginia	48. Hawaii
9. Oklahoma	49. Oregon
10. Arkansas	50. Wyoming

 
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.”
–
“Residents of North Dakota saw the biggest increase in auto loan interest rates from Q1 2026 to Q2 2026, with the average rising by around 2.2%. That brought the average interest rate overall to 10.2%. The good news is that even with the large increase, North Dakota residents pay much less on their auto loans than people in many other states. In fact, their average interest rate in Q2 2026 was the 22nd-lowest in the nation.”

- Chip Lupo, WalletHub Analyst                            


More From WalletHub

• Auto Loan Statistics
• States Where Auto Loan Debt Is Increasing 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