With average auto loan debt reaching as much as 45% of median income in some states, the personal finance company WalletHub has released its updated report on the States Where People Overspend the Most on Car Loans, shedding light on where financial strain is most evident.

To determine these rankings, WalletHub compared median car-loan debt to residents’ income across all 50 states and the District of Columbia.

Car Loan Debt in New York (1=Most Expensive; 25=Avg.):

• Average Car Loan Debt: $16,743
• Average Car Loan Debt as % of Median Monthly Household Income: 24%

Tips for Saving Money on Car Loans

1. Buy a used car: Since used cars are less expensive than new cars, you won’t need to take out as large of a loan, and your down payment will go further. However, interest rates on used cars can be higher than those on new cars, so make sure that you will actually end up paying less in the long run before signing a loan.
    
2. Make a larger down payment: The more money you’re able to put toward the car upfront, the less you’ll have to borrow, which means you’ll also pay less interest over the life of the loan. In addition, the larger your down payment is, the lower your interest rate is likely to be.
    
3. Get a shorter loan: Paying your car loan off over 24 months will require much higher monthly payments than paying it off over 72 months, for example. But you’ll also accrue far less interest, saving yourself potentially hundreds or thousands of dollars.
    
4. Practice good budgeting skills: In preparation for buying a new car, strive to set aside money in your budget each month toward a down payment or future installment payments. It’s also a good idea to build an emergency fund you can dip into if you suddenly need a new car or car repairs. In order to build a significant amount of savings, you may need to at least temporarily cut back on some luxury spending.
    
5. Shop around: Different car dealerships can have vastly different prices for cars. You should also consider a variety of different car models if you’re not loyal to a particular brand. In addition, you may want to shop for cars around holidays when dealerships tend to offer big money-saving promotions.