HONOLULU (KHON2) — Hawaiʻi drivers are holding steady when it comes to auto loan debt.
According to WalletHub’s latest report, the state ranks No. 48 in the nation for auto debt increases.
This means Hawaiʻi had the third smallest growth in the United States between the first and second quarters of 2025.
Here’s what we found in the report.
National debt on the rise
Across the U.S., auto loan debt has climbed to nearly $1.7 trillion. The average household now owes about $13,800. This is only a few hundred dollars short of a record high. While debt grew in most states by less than 1%, others saw far sharper jumps.
“From Q1 2025 to Q2 2025, residents of most states either had a less than 1% increase in their average auto loan balance or actually had that average decrease,” said John Kiernan, an analyst for the study. A few states had more dramatic increases, reaching nearly 2.4%, which suggests that people in some states are more affected by inflation in car prices or are biting off more than they can chew when it comes to loans.”
A closer look at the numbers
Hawaiʻi ranks third in the nation for the smallest increase in auto loan debt, according to the report. Only South Dakota and Ohio experienced smaller gains between the first and second quarters of 2025.
The analysis shows that Vermont saw the fastest increase, with average balances climbing 1.8% to $21,792. Delaware’s increase of nearly 2.4% marked the sharpest rise nationwide. New Mexico followed with a 1.1% jump, raising its average balance to $22,133.
By comparison, Hawaiʻi’s minimal increase placed it amongst the top three states with the least growth in auto debt.
Managing the burden
The report also offered practical steps for borrowers trying to manage auto loan debt:
- Make extra payments when possible to reduce the loan balance faster.
- Refinance to get a lower rate or better terms.
- Use automatic payments to avoid late fees.
- Budget monthly expenses carefully.
- Boost income through extra work or side jobs.
You can click here to access the full report.
Steady financial habits in the islands
While car prices and interest rates remain high across the U.S., Hawaiʻi’s low increase in auto loan debt suggests that local households are keeping tighter control over vehicle spending.
With the average debt growth nearly flat, the state continues to rank among the most financially cautious when it comes to auto loans.