U.S. auto sales were down slightly in 2019 but auto manufacturers still sold over 17 million vehicles for the fifth consecutive year. Experts predict the number of vehicles sold in 2020 to be between 16.7 and 17.1 million. Many Americans purchase cars after tax season, especially on Presidents’ Day weekend. Unfortunately, this year, refund delays could leave many people with less money for a down-payment.
And while the industry as a whole is still strong, the higher auto sales are, the more debt consumers take on. According to the Federal Reserve Bank of New York’s latest report on household indebtedness, auto-loan balances have grown steadily over the past eight years, increasing by another $18 billion in Q3 2019.
But not every city is alike. In order to determine where Americans overspend on their set of wheels, WalletHub compared the median auto-loan balance of more than 2,500 U.S. cities. Prior to shopping for a new vehicle, we recommend prospective car buyers check their credit scores for free on WalletHub and use a Car Payment Calculator to determine an auto-loan payment and timeline they can afford.
