Louisiana Auto Loan Rates Soar Above Half Of Country

With the cost of vehicles many have always turned to auto loans to cover the costs, new data shows how Louisiana pays more on average.

• Louisiana has among the top 10 most expensive auto loan rates when compared to the rest of the country.

WalletHub has released a study comparing all state's auto loan interest rates to determine which states have had the most increase in interest rates over the last financial quarter. North Dakota was the state where auto loan rates increased the most, up 2.34% from Quarter 2 of 2024.

Louisiana saw the auto loan interest rate grow only 0.96% over the financial quarter, slower than over half of the country. But despite a slower growth over a quarter, Louisiana still by far pays a much higher interest rate.

Out of all 50 states Louisiana was 6th among states with the highest average auto loan interest rates at 11.51%.

Louisiana's interest rate on auto loans is only slightly lower than the states of Mississippi, Kentucky (12.50%), Alabama (11.84%), South Carolina (11.73%), and Arkansas (11.68%). Louisiana is among 11 other states with an auto loan rate of over 11%.

Louisiana residents looking to flee the state in search of a low auto loan rate should look towards Vermont, where the interest rate actually dropped over the financial quarter to the state's current average rate of 8.36%. If Vermont isn't your style there's always Massachusetts, and not just because those states are neighbors but because Massachusetts has an average of 8.15%.

Hopefully, the interest rate should fall with new legislation that's been teased by lawmakers. The Louisiana Commissioner of Insurance, Tim Temple, recently held a town hall to discuss what he described as a "crisis" and highlighted his intentions to repair the state's issues with insurance.