Car shoppers are paying more than ever for new models, and as a result Americans are spending more of their discretionary income on their vehicles.
According to a new study released by Integra Credit, Americans are spending $5,680 per year, plus $517 in interest, on auto loans. That amount equates to 12.4% of the average American's disposable income, according to the group.
National auto debt per capita has risen 92% since 2003, going from $2,960 in that year to $5,680 by the end of 2024, according to Integra.
The finding comes as the average price of a new car rose to $49,855 in July, according to Cox Automotive's Kelley Blue Book. The average July price for new cars was up 0.2% from June's average of $49,757, and it was also a 1.9% increase over
July 2025's average, according to the group.
"To keep up with the rising costs, America has resorted to relying more and more on financing options," Integra said.
"Research shows that the average monthly payments for a new car are currently as high as $748 and overall loan amounts are reaching as high as $42,332 across a 69-month term for a new car," the group continued. "As inflation continues to grow, questions remain over whether disposable income can keep pace with the affordability of both new and used vehicles."
With that in mind, the USA TODAY Cars Team took a look at Integra's ranking of the states with the highest amounts of auto debt.
1. New Mexico
Average yearly car loan amount: $6,780
Percentage of people with missed car loan payments: 5.5%
Average percentage of disposable income: 17.3%
2. Mississippi
Average yearly car loan amount: $6,470
Percentage of people with missed car loan payments: 7.12%
Average percentage of disposable income: 16.6%
3. Louisiana
Average yearly car loan amount: $6,890
Percentage of people with missed car loan payments: 6.28%
Average percentage of disposable income: 16.4%
4. Texas
Average yearly car loan amount: $7,920
Percentage of people with missed car loan payments: 2.5%
Average percentage of disposable income: 15.7%
5. Arkansas
Average yearly car loan amount: $6,330
Percentage of people with missed car loan payments: 5.29%
Average percentage of disposable income: 15.4%
6. West Virginia
Average yearly car loan amount: $6,320
Percentage of people with missed car loan payments: 4.77%
Average percentage of disposable income: 15.1%
7. Georgia
Average yearly car loan amount: $6,530
Percentage of people with missed car loan payments: 6.76%
Average percentage of disposable income: 14.7%
8. Oklahoma
Average yearly car loan amount: $6,270
Percentage of people with missed car loan payments: 4.83%
Average percentage of disposable income: 14.7%
9. Alabama
Average yearly car loan amount: $6,220
Percentage of people with missed car loan payments: 6.48%
Average percentage of disposable income: 14.7%
10. South Carolina
Average yearly car loan amount: $5,930
Percentage of people with missed car loan payments: 5.89%
Average percentage of disposable income: 14.7%
Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at klaing@usatodayco.com.
This article originally appeared on USA TODAY: What states have the highest amount of car debt? Here are the top 10
