Auto Debt Equals At Least Half Of Income In 170 U.S. Cities
By CU Today Staff —
WASHINGTON— Auto loan debt equals at least half of residents’ annual income in 170 U.S. cities, according to a WalletHub analysis that underscores growing affordability risks for vehicle buyers.
WalletHub compared median auto-loan balances with median incomes in more than 2,500 cities. Rio Grande City, Texas, ranked highest, with median auto debt of $33,802 equal to 92% of median income. Donna, Texas, followed at 89%, while Pine Bluff, Ark., ranked third at 85%.
“Many Americans are overspending on cars; in 170 cities, the average resident’s auto loan debt is the equivalent of half or more of their yearly income. Residents dealing with these expensive loans on top of debt from credit cards, personal loans, student loans and mortgages are at risk of falling behind on payments and having their vehicles repossessed. Buying less expensive, used vehicles or saving up money to minimize loans can help prevent unsustainable auto loan debt,” said WalletHub analyst Chip Lupo.
The findings come as U.S. auto loan balances continue to rise. Outstanding balances increased by $28 billion during the second quarter to $1.71 trillion, according to the Federal Reserve Bank of New York. Auto sales rose nearly 2% in 2025 to their highest annual volume since 2019, although Cox Automotive has forecast a 2.9% decline in new-vehicle sales during 2026.
Other cities with particularly high auto-debt-to-income ratios included Mercedes, Texas, at 79%; Abbeville, La., at 76%; Leesville, La., at 74%; and San Juan, Texas, at 73%.
Originally reported by CU Today.