Auto loan rates are climbing. Check your state before you sign

2 min read

WalletHub says average auto-loan rates rose by as much as 2.19 points from Q1 to Q2, led by North Dakota.

Borrowing for a car got more expensive in some states this spring. The Auto Channel reports that personal-finance site WalletHub released an updated ranking of the states where auto-loan interest rates are climbing fastest, based on its own user data, comparing the first and second quarters of 2026.

WalletHub says average rates rose by as much as 2.2% in that span. The Auto Channel also notes the Federal Reserve's recent 25-basis-point rate hike, which adds to the pressure.

North Dakota topped the list. WRNJ Radio, citing the report, says its average auto-loan rate rose 2.19 percentage points to 10.23%. Maine was second, up 1.40 points to 9.66%, followed by New Hampshire, up 1.20 points to 9.81%. Vermont and Idaho rounded out the top five, with increases of 1.04 and 1.03 points.

At the other end, rates barely moved or even dipped in some places. WRNJ reports Delaware's average fell 0.02 points to 11.49%. A big increase doesn't always mean the highest rate, either: WRNJ notes Mississippi, at 13.16%, Alabama, at 12.50%, and Arkansas, at 12.31%, had higher averages than many states that rose faster.

Why it matters: higher rates mean higher monthly payments and more total interest on new loans. As Maine's Q106.5 pointed out, existing fixed-rate loans aren't affected, but new buyers may need a cheaper car or a bigger down payment to stay on budget.

Before you sign, check where your state ranks in WalletHub's report, and get a preapproval from a bank or credit union so you can compare it with the dealer's offer.

Sources: The Auto Channel, WalletHub, WRNJ Radio, Q106.5