These cities are seeing the largest jump in auto loan debt—see the list

Americans collectively carry approximately $1.7 trillion in auto loan debt, with the average household owing nearly $14,000, according to a new WalletHub analysis of consumer debt trends.

As interest rates have risen sharply in recent years, the cost of financing vehicles has increased, making auto loans more expensive for borrowers. Experts say growing auto loan balances in certain cities could be an indicator of financial stress and potential repayment challenges ahead.

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What they're saying:

"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," said Chip Lupo, an analyst at WalletHub. "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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Cities where auto loan debt is increasing most

Dig deeper:

Winston-Salem, N.C.

Winston-Salem posted the second-largest increase in average auto loan debt nationwide, with balances rising more than 3.1% from Q4 2025 to Q1 2026. The average balance reached $19,239, with monthly payments averaging $475. While the city has relatively high debt delinquency rates, low levels of financial distress suggest most residents remain able to manage their payments.

Scottsdale, Ariz. 

Scottsdale ranked second overall and has the highest average auto loan balance and monthly payment in the nation at $26,284 and $655, respectively. Auto loan balances increased more than 1.5% during the quarter. Despite the high debt load, Scottsdale maintains one of the country's lowest delinquency rates and relatively low financial distress.

Norfolk, Va.

Norfolk saw the nation's largest increase in average auto loan balances, up nearly 3.2% between Q4 2025 and Q1 2026. Average balances reached $18,421, with monthly payments of $424. Although delinquency rates are relatively high, residents rank among the least financially distressed in the country.

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Tips for paying off auto loan debt

What you can do:

• Pay extra when possible: Additional payments reduce the principal faster, saving on interest and shortening the loan term. Check for prepayment penalties first.
• Refinance your loan: A lower interest rate or better terms can reduce costs and monthly payments.
• Enroll in autopay: Automatic payments help avoid late fees and may qualify you for lender discounts.
• Stick to a budget: Cut unnecessary spending and direct more money toward your loan.
• Boost your income: Extra work or side income can help you pay off your loan faster.

Methodology:

WalletHub analyzed the 100 largest U.S. cities with complete data, comparing changes in auto loan debt and average loan balances and monthly payments. 

Using proprietary consumer debt data, cities were scored across three weighted metrics on a 100-point scale. Overall scores were then used to rank the cities, considering only city limits and not surrounding metro areas.