By Hank Russell
A recent study found that auto loan rates in New York State increased less than 1% — one of the 20 lowest increases in the nation.
According to data from WalletHub, New York State’s auto loan rates increased only 0.94% in the second quarter of 2025. While that may seem low, that was not as low as 19 other states. In fact, in Alaska, loan rates dropped 0.30%, making them the only state with a quarterly decrease.
WalletHub also reported that Wyoming had the highest increase at 2.26%.
In addition, New York’s auto loan rate for the second quarter of this year was 9.12%, tied with Alaska and among the five lowest rates. The lowest rate belongs to Massachusetts with 8.43%, which is up 0.46% from the first quarter of 2025. Rounding out the bottom five are Vermont (8.73%), Rhode Island (8.89%) and Utah (8.97%).
In other news, the total auto loan debt in Q2 2025 nationwide is $1.66 trillion, a 1.78% increase over the second quarter of 2024. New York was 12th in auto loan debt last year, based on data from WalletHub. Further, the average loan balance per household in the U.S. was $13,739.
“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,” said WalletHub analyst Chip Lupo. “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.”