Texas Leads The Nation In $1,000+ Car Payments 

Once the financial realm of high-end luxury sedans and status-symbol SUVs, the $1,000 car payment is no longer reserved for the few. According to a recent LendingTree study based on 180,000 anonymized credit reports from Q1 2025, nearly one in 12 Americans with an auto loan—8.6%—are making monthly car payments of at least $1,000. That includes buyers of new and used vehicles as well as lessees, meaning this isn’t just a result of luxury tastes—it’s becoming a middle-class reality.

Part of the story is timing. More than 40% of these four-figure loans originated in 2024, showing that high monthly payments aren’t just lingering leftovers from the post-COVID supply crunch. They're fresh, they're active, and they’re still being signed today. LendingTree found the average borrower with a $1,000 payment is spending about 10.9% of their monthly income on that payment alone. That’s before factoring in gas, insurance, registration, and maintenance.

The geographic breakdown reveals a stark divide. High-payment auto loans are most common in large, vehicle-dependent states where public transportation is scarce, distances are long, and vehicle preferences lean big. Texas leads the pack with 12.8% of auto borrowers making $1,000+ payments. Nevada follows at 11.9%, with Wyoming and Georgia tied at 11.6%. Rounding out the top 10 are California and Florida (11.3%), Alaska (10.7%), Arizona (10.5%), New Mexico(10.4%), and Washington (10.3%).

Here's the full ranking of states with the highest share of borrowers making at least one $1,000 car payment:

1. Texas – 12.8%
2. Nevada – 11.9%
3. Wyoming – 11.6%
4. Georgia – 11.6%
5. California – 11.3%
6. Florida – 11.3%
7. Alaska – 10.7%
8. Arizona – 10.5%
9. New Mexico – 10.4%
10. Washington – 10.3%
11. Colorado – 10.2%
12. Utah – 9.9%
13. North Carolina – 9.8%
14. Louisiana – 9.7%
15. South Carolina – 9.6%
16. Tennessee – 9.6%
17. Hawaii – 9.4%
18. Mississippi – 9.2%
19. Oregon – 9.1%
20. Delaware – 8.9%

At the other end of the spectrum are states where borrowers are much less likely to face four-figure car notes—primarily in the Northeast and Midwest: Rhode Island came in lowest, with only 4.8% of auto borrowers making $1,000+ payments. Maine followed at 5.1%, then Pennsylvania (5.2%), Connecticut (5.4%), New Hampshire (5.6%), Michigan (5.6%), Massachusetts (5.8%), West Virginia (5.9%), New Jersey (6.1%), and Vermont (6.3%).

Age and credit score also play a role in who’s driving into expensive territory. Gen Xers, those aged 45 to 60, lead the way, with 10.8% making at least one $1,000 monthly car payment. They’re followed by baby boomers (8.6%), millennials (8.0%), and Gen Z at just 3.2%. Ironically, borrowers with the strongest credit scores—720 and above—are most likely to have four-figure payments. Nearly 10.4% of these super-prime borrowers have them, compared with just 5.2% of those with deep subprime credit scores (below 580). That likely reflects both greater buying power and greater access to financing.

So why are four-figure car payments rising? The reasons are layered: higher vehicle prices, rising interest rates, longer loan terms, more expensive trims, and buyer expectations that continue to climb. Add in inflation and insurance hikes, and suddenly, what used to feel excessive is now being justified as “normal”—especially in pickup- and SUV-heavy markets.

LendingTree suggests that consumers looking to avoid the four-figure pitfall start by improving their credit score before shopping, making a larger down payment, comparing lender offers, and avoiding extended loan terms that make payments deceptively affordable in the short term but more expensive in the long run.

Whether this trend continues will depend heavily on where vehicle prices, loan rates, and consumer confidence go next. But for now, four-digit car payments are no longer an anomaly. In a growing number of American households, they’re just another part of the monthly budget.