Auto Loan Expenses Across 4 Southern States: Which Will Drain Your Wallet More?

When financing a new vehicle in the South, your total financial burden depends on several critical factors: your down payment amount, the loan term you select, and most importantly, what type of vehicle you’re purchasing. These variables directly impact how much you’ll borrow and the monthly strain on your budget. Let’s break down the realistic financing costs across four major Southern states and examine how your car choice affects your overall expenses.

Which Southern State Offers the Best Deal?

Before diving into specifics, it’s worth noting that financing costs remain surprisingly consistent across these four states, though meaningful differences emerge depending on your vehicle preference. Electric vehicles tend to offer lower financing requirements, while sedans often command the highest monthly commitments.

Mississippi: The Starting Point for Comparison

Mississippi residents securing an auto loan for a new vehicle face an average combined expense of $47,415, translating to roughly $764 monthly. Those gravitating toward truck ownership should budget approximately $47,238 upfront, with $751 in monthly obligations.

The SUV category sits at $47,305 total with $756 monthly payments. However, Mississippi stands out for electric vehicle buyers: the total financing need drops significantly to $45,919 with only $657 monthly, making it attractive for eco-conscious shoppers. Sedans, conversely, demand the highest commitment at $47,866 total and $797 monthly.

Florida: A Moderate Middle Ground

Florida’s auto financing landscape reveals an average expense of $47,222 per vehicle with $765 monthly installments. Truck buyers in the Sunshine State will encounter $47,442 total (though monthly remains competitive at $766). SUVs run approximately $47,330 with $758 monthly requirements.

Electric vehicle financing here stands at $46,799 ($720 monthly)—notably lower than conventional vehicles. Sedan financing climbs to $47,623 with $779 monthly payments, positioning them as the priciest option in Florida.

Arkansas: Understanding Average Car Payment in Arkansas

The average car payment in Arkansas reflects statewide borrowing patterns worth examining. Overall auto loan expenses average $47,387 annually with $762 monthly commitments.

Those pursuing truck financing face $47,362 total and $760 monthly. SUV purchases require approximately $47,273 with $754 in monthly payments. Electric vehicles present savings: $46,721 total financing with $714 monthly obligations. Sedans demand the highest investment at $47,765 and $790 monthly—making them the premium choice for traditional buyers.

Alabama: The Comparable Contender

Alabama’s auto financing picture closely mirrors its neighboring states. New vehicle financing averages $47,427 total with $765 monthly obligations. Truck enthusiasts allocate roughly $47,310 upfront and $757 monthly.

SUVs maintain consistency at $47,283 total and $755 monthly. The standout remains electric vehicles: Alabama EV buyers spend $46,139 with $673 monthly payments—the lowest monthly burden across the four states. Sedans require $47,915 total and peak at $801 monthly.

Key Takeaway: Your Vehicle Type Matters More Than Your State

Across all four Southern states, the financing differences prove minimal. What truly impacts your wallet is your vehicle choice. Electric vehicles consistently offer 2-3% savings on total financing and substantially lower monthly payments. Sedans demand premium financing, while trucks and SUVs cluster in the mid-range. Your monthly payment commitment varies by 50-150 dollars depending on vehicle type—far more significant than cross-state variations.