In the last quarter of 2025, nearly one out of 10 people with active auto loans in the U.S. had a payment of $1,000 or more, according to LendingTree data.

While car prices have been on the rise for years, the online marketplace said that tariff hikes on imported cars and certain car parts last year impacted automakers.

“A $1,000 car payment is really, really high, but many Americans are clearly willing to take them on,” said LendingTree Chief Consumer Finance Analyst Matt Schulz. “In much of this country, you can’t get by without a vehicle.”

The state with the highest rate of four-figure car payments was Texas at 15%, followed closely by Alaska and Wyoming. The Lone Star state also had the highest rate in last year’s analysis.

LendingTree suggests that rates may be higher in more rural areas because it makes more sense to have a truck or SUV there, and those tend to be pricier vehicles.

On the flip side, states in the Northeast and Midwest have some of the lowest rates of $1,000-plus monthly payments. Rhode Island had the lowest at 4%, Maine and Pennsylvania trailing not far behind. Those regions tend to have population centers closer together than those in the South or West, LendingTree, pointed out, making the need for vehicles suited for longer drives or rugged terrain less acute.

Age demographics and credit scores also factored into the most likely consumers to have higher loan payments. LendingTree found that those ages 45 to 60 were the most likely at 12%, followed by ages 61 to 79. The youngest generation of car buyers was the least likely to have the higher payments.

“To get a pricey loan, you have to be able to qualify for that loan,” Schulz explained. “Gen Xers, who tend to have higher credit scores than their younger counterparts and be in their prime earning years, can usually do that.” 

LendingTree’s analysis found that borrowers with super-prime credit scores were the most likely to have a $1,000-plus monthly payment, and as the credit score dropped so did the link to the heavier burden.