Residents of Rio Grande, Texas, carry the highest auto loan burden relative to income among more than 2,500 U.S. cities, according to a WalletHub ranking released Aug. 26, 2026.
WalletHub divided median car-loan debt by median full-time earnings in each city proper, using TransUnion loan data as of March 2026 and Census income figures from 2024. Surrounding metro areas were excluded.
In Rio Grande, median auto loan debt stood at $33,802 against median income of $36,715, a 92 percent debt-to-income ratio. Donna, Texas, ranked second at 89 percent, with $28,361 in loan debt and $31,889 in income. Pine Bluff, Arkansas, placed third at 85 percent, with $34,206 in debt and $40,227 in income.
In 170 cities, typical auto loan debt equals half or more of yearly work income. More than 680 cities had ratios of 25 percent or lower.
The measure covers only car loans. Many households also carry credit cards, personal loans, student debt or mortgages. National auto loan balances rose another $28 billion in the second quarter of 2026 to $1.71 trillion, according to the Federal Reserve Bank of New York. U.S. auto sales increased nearly 2 percent in 2025, the highest annual volume since 2019, though forecasts point to a 2.9 percent decline in new-vehicle sales in 2026.
Chip Lupo, WalletHub analyst, said: “Many Americans are overspending on cars; in 170 cities, the average resident’s auto loan debt is the equivalent of half or more of their yearly income. Residents dealing with these expensive loans on top of debt from credit cards, personal loans, student loans and mortgages are at risk of falling behind on payments and having their vehicles repossessed. Buying less-expensive, used vehicles or saving up money to minimize loans can help prevent unsustainable auto loan debt.”
WalletHub advised checking credit scores and using a car payment calculator before taking on a loan. The ranking and methodology are published at WalletHub.com.
