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Auto Debt Is Bigger in Texas: Here’s How It Looks Around the Lone Star State

Jenn Jones
Written by Jenn Jones
Published on:
September 10, 2019
Content was accurate at the time of publication.
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Auto debt is almost more Texan than going through a Whataburger drive-thru — residents of the Lone Star State carry 44% more auto debt than Americans as a whole.

Per the Federal Reserve, if you take all the money owed for vehicles in Texas and spread it to everyone in the state — regardless of whether they have auto debt — each person with a credit report owes $6,820. If you do the same with everyone in the U.S., each person owes $4,740.

Texan vehicle culture can have far-reaching financial consequences for borrowers. The pressure of a longer and larger auto loan could delay residents from reaching life milestones such as getting a mortgage or retirement. LendingTree researchers took a magnifying glass to auto debt in Texas to see how things look throughout the state.

Key findings

Texas auto debt statistics
  • On average, Texans with auto debt pay $487 a month per loan, while the outstanding balance on a loan is $19,183.
  • Auto loan originations are 9.9% higher and monthly payments are 13.1% higher in Texas than they are for the U.S. as a whole.
  • Residents of Andrews in western Texas take out the biggest auto loans — $33,644 on average — and have the highest monthly payments at $614 a loan.
  • Less was borrowed — and owed — on vehicles in more urban areas. People who live in cities borrowed an average of $26,622 in loans. Those in large towns borrowed $26,987, while rural Texans borrowed $27,838. Rural Texans pay $26 more a month for each loan than do metropolitan Texans.
  • Among the five largest metropolitan areas — Austin, Dallas-Fort Worth, Houston, McAllen and San Antonio — auto debt is largest in the McAllen metro, where residents owe an average of $21,562 on an average loan origination of $29,779, with an average monthly payment of $520.
How auto debt in Texas compares to the entire U.S.
U.S.TexasDifference
Average Balance per Loan$16,654$19,18315.2%
Average Loan Origination Amount per Loan$24,296$26,7029.9%
Average Monthly Payment per Loan$430$48713.1%
Average Term Lengths (Months)66671.5%
Average Number of Auto Loans per Person w/ Active Loan(s)1.41.3-3.7%

Texas auto debt: The highs — and lows

3 cities and towns in texas

Now, we’ll break down the above info even further to show you exactly where these towns and cities are located in Texas.

average balance per loan
average loan origination amount per loan
average monthly payment per loan
average on time payment rate
average term lengths months

Urban vs. rural areas

Auto debt statistics in big metros, small metros and rural communities in Texas
Average Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)Average Number of Auto Loans per Person w/ Active Loan(s)
Metropolitan Areas$19,100$26,622$484671.3
Micropolitan Areas$19,560$26,987$501671.4
Rural Areas$20,252$27,838$510661.4
Entire State$19,183$26,702$487671.3

Drivers in rural areas of Texas, from the oil fields to the cattle ranches, tend to have higher auto loan balances, origination amounts and payments than those in micropolitan and metropolitan areas; however, their auto loan terms are slightly shorter. Texas’ big city drivers have fewer car loans per person and lower numbers of auto loan debt, as compared to micropolitan areas.

Generation vs. generation

Auto debt statistics in Texas by generation
Average Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)Average Number of Auto Loans per Person w/ Active Loan(s)
Silent Generation$17,066$25,743$447671.3
Baby Boomers$18,540$27,096$486671.4
Generation X$19,732$27,710$503671.4
Millennials$19,043$25,381$471671.3

Generation Xers have the most auto debt in Texas, followed by millennials, baby boomers and the silent generation. Generation Xers and baby boomers have more active car loans per person.

State breakdown

While the Lone Star State as a whole apparently likes making car payments, different areas within the state have a greater preference for it. Barring drivers in El Paso, drivers in the far south and west of Texas tend to be in the red — deeper in auto debt — while drivers further north and east are comparatively better off.

Breakdown among largest metros

Austin

Car debt in select towns and cities in the greater metropolitan area of Austin
CityAverage Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)
Austin$16,981$24,143$44266
Buda$20,161$27,827$47969
Cedar Park$17,858$26,476$46067
Georgetown$19,750$27,822$48368
Hutto$18,608$26,468$46368
Kyle$18,061$25,273$45167
Leander$19,319$26,756$46568
Pflugerville$18,808$26,276$46867
Round Rock$18,084$25,313$45667
San Marcos$16,950$23,116$43065

Austin, the capital of Texas, has the lowest auto debt among the five largest Texas metros, with current debt of $17,969 on loans that originated at $25,271 with average monthly payments of $455.

Dallas-Fort Worth

Car debt in select towns and cities in the greater metropolitan area of Dallas-Fort Worth
CityAverage Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)
Arlington$17,213$24,307$45766
Dallas$17,959$25,204$47766
Fort Worth$17,917$25,064$46767
Frisco$19,920$28,636$50367
Garland$17,291$24,408$45267
Grand Prairie$17,993$25,244$47166
Irving$17,747$24,685$46566
McKinney$19,524$27,377$48067
Mesquite$17,354$24,260$46467
Plano$18,043$26,291$47766

The average balance per loan for drivers in the Dallas-Fort Worth metro is $18,580, slightly higher than in Austin. Average monthly payments in the metro are $476, which sits in the middle among the metros being discussed.

Houston

Car debt in select towns and cities in the greater metropolitan area of Houston
CityAverage Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)
Conroe$19,535$27,466$48968
Cypress$20,202$29,187$51167
Galveston$18,305$25,086$45865
Houston$18,556$26,052$48967
Humble$19,793$27,977$50468
Katy$19,154$27,262$49268
Pearland$20,878$29,923$52767
Richmond$21,561$30,200$52367
Spring$20,119$28,449$50667
Sugar Land$19,314$28,586$50466

Drivers in this metro — home to the largest city in Texas and the fourth-largest in the nation — have an average balance per loan of $19,667 on an auto loan origination amount of $27,623 with a payment of $503.

McAllen

Car debt in select towns and cities in the greater metropolitan area of McAllen
CityAverage Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)
Alamo$19,635$28,497$51169
Donna$21,789$28,453$51470
Edinburg$22,357$30,496$52670
Hidalgo$23,728$30,593$54672
McAllen$21,407$29,998$51570
Mercedes$20,714$30,035$53670
Mission$21,278$29,922$52270
Pharr$20,978$27,940$50370
San Juan$21,565$29,209$51271
Weslaco$21,690$29,643$52470

McAllen sits in a necklace of border towns — all with high auto debt. As noted above in our key findings, auto debt is largest in the McAllen metro among these metros.

San Antonio

Car debt in select towns and cities in the greater metropolitan area of San Antonio
CityAverage Balance per LoanAverage Loan Origination Amount per LoanAverage Monthly Payment per LoanAverage Term Lengths (Months)
Boerne$23,091$32,241$53868
Cibolo$21,349$29,171$49968
Converse$17,923$25,276$45668
Floresville$19,357$27,864$50464
Helotes$21,452$29,642$47570
New Braunfels$20,466$27,946$49068
San Antonio$18,144$25,428$46567
Schertz$19,560$27,804$48768
Seguin$18,328$24,760$45667
Universal City$15,783$22,603$42066

Drivers in this metro sit in the middle among the five largest in the state when it comes to current loan balance. The average balance per auto loan in the metro is $18,620.

Methodology

Using a sample of anonymized Q1 2019 credit reports of LendingTree members who have active auto purchase loans and a Texas ZIP code, researchers mapped the more than 125,000 borrowers and 175,000 representative loans to the Census-designated places, metropolitan statistical areas and micropolitan statistical areas by ZIP code.

Researchers then calculated the averages (mean) across those geographies for current auto loan balance, loan origination amount, monthly payment and term lengths on a per-loan basis, as well as the number of auto loans and on-time payment rates on a per-borrower basis.

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