NEW JERSEY — New Jersey residents devote one of the smallest portions of their income to car loan debt in the nation, according to a new analysis by personal finance website WalletHub.
The study ranked states based on the percentage of residents’ income consumed by auto loan debt and found New Jersey has the third-lowest burden in the country.
According to WalletHub, the average car loan debt in New Jersey is $16,548, representing about 22% of the state’s median monthly household income.
The analysis compared median car loan debt with residents’ income levels across all 50 states and the District of Columbia to determine where vehicle financing places the greatest strain on household budgets.
Nationally, WalletHub found that average auto loan debt reaches as much as 45% of median income in some states, highlighting significant differences in affordability across the country.
The report suggests New Jersey drivers are generally better positioned to manage vehicle debt relative to their earnings compared with residents in most other states.
WalletHub’s rankings are based on an evaluation of average car loan debt levels and income data to measure the financial impact of vehicle financing on households.
The full report is available through WalletHub.
