Texas leads the U.S. in monthly car payments over $1K, new study reveals
Texas has been listed as the top state with the highest share of borrowers making monthly payments of $1,000 or more for auto loans, according to a new study from online lending marketplace LendingTree.
The study was compiled by analyzing a sample of 180,000 anonymized credit reports of American LendingTree users from the first quarter of 2025. The credit reports LendingTree analyzed included people with active loans on new or used vehicles and leases to determine the percentage of monthly payments of $1,000 or more.
The analysis covered national, state, generational, and credit score data.
LendingTree found that in most states, at least 10 percent of people with auto loans have one with a $1,000 monthly payment or more. The study called Texas is the “4-figure car payment capital of the U.S.” because 12.8 percent of auto loan holders in Texas have a four-digit car payment.
When it comes to generations most likely to have a $1,000 car payment, Gen Xers are more than twice as likely as the younger generations.
| Generation | Age Range | $1,000 + auto loan percent |
|---|---|---|
| Gen X | 45-60 | 10.8% |
| Baby Boomers | 61-79 | 8.6% |
| Millennials | 29-44 | 8.0% |
| Gen Z | 18-28 | 3.2% |
Those with higher credit scores are also more likely to have four-digit monthly car payments, according to LendingTree. Those who have credit scores of 720 or higher out of 850 are 10.8 percent more likely to have monthly auto loan payments of $1,000 or more. Individuals on the other side of the credit spectrum, with scores below 580, are least likely to have such high payments. Just 5.2 percent of those borrowers pay $1,000 or more.
Tips to control costs if you’re looking to buy a new car
Improve your credit score
- Pay down balances.
- Set up autopay.
- Consider asking for a higher credit limit to improve utilization.
Calculate what you can afford
- Use auto loan calculators.
- Research typical interest rates for your credit score.
Save for a down payment
- Even a small down payment helps.
- High-yield savings accounts can boost your savings.
- Consider selling your old car yourself.
Buy only what you need and compare lenders first
- Don’t be swayed by expensive features if you’re on a tight budget.
- Shop around for the best loan rates and get preapproved before going to the dealership.