New Jersey ranks 17th for largest increase in auto loan interest rates, WalletHub finds

NEW JERSEY — New Jersey ranked 17th in the nation for the largest increase in auto loan interest rates during the second quarter of 2026, according to a new study released Wednesday by personal finance company WalletHub.

The report found that New Jersey’s average auto loan interest rate reached 10.17% in the second quarter, an increase of 0.82 percentage points from the first quarter of 2026.

WalletHub analyzed proprietary user data to determine which states experienced the largest changes in average auto loan interest rates between the first and second quarters of the year.

Nationally, average auto loan rates increased by as much as 2.19 percentage points in some states, according to the report.

North Dakota recorded the largest increase, with its average auto loan rate rising 2.19 percentage points to 10.23% in the second quarter.

Maine ranked second, with an increase of 1.40 percentage points to 9.66%, followed by New Hampshire, where rates increased 1.20 percentage points to 9.81%.

Vermont and Idaho rounded out the top five, with increases of 1.04 and 1.03 percentage points, respectively.

New Jersey’s increase was greater than those recorded in several neighboring states.

Pennsylvania ranked 37th, with an average auto loan interest rate of 10.70%, up 0.44 percentage points from the previous quarter.

New York ranked 39th, with an average rate of 9.30%, an increase of 0.42 percentage points.

Delaware ranked 45th, with an average rate of 11.49%, a decrease of 0.02 percentage points.

While New Jersey ranked 17th for the size of its increase, its average auto loan interest rate remained below those reported in several states, including Mississippi at 13.16%, Alabama at 12.50% and Arkansas at 12.31%.

Five states recorded declines in average auto loan interest rates during the second quarter.

Wyoming experienced the largest decrease, with rates falling 1.07 percentage points to 9.53%. Oregon followed with a decrease of 0.59 percentage points, while Hawaii saw rates decline 0.48 percentage points.

Alaska and Washington also recorded decreases of 0.36 and 0.12 percentage points, respectively.

The WalletHub report comes amid changes in borrowing costs, including a recent 25-basis-point interest rate increase by the Federal Reserve, according to the company.

The full report, including rankings for all 50 states, is available at WalletHub.com.