A new car is as much a status symbol as it is a means of transportation. But car sales are also a measure of consumer debt since many Americans take out an auto loan to finance their cost.
Where you live can determine how well you can absorb an auto loan, so WalletHub compared the median auto loan balance of more than 2,500 U.S. cities.
In ranking cities, the website compared auto debt to average annual income, meaning that an area's economy and wages played into the ranking just as much as the auto debt being carried by a city's residents.
According to the Federal Reserve, auto loan balances have grown steadily over the past seven years, increasing by another $27 billion in the third quarter.
Below, in ascending order, are the 10 U.S. cities whose residents have the highest percentage of auto debt compared to income:
10. Bastrop, La.
Debt-to-income ratio: 69%
With over 42 percent of the population in Bastrop living below the poverty level, financing the purchase of a car can take a toll on a household budget. The median auto loan debt in Bastrop is $15,796.
9. Cordele, Ga.
Debt-to-income ratio: 70%
Known as the Gateway to South Georgia, Cordele's median auto loan debt is $18,103, while the median income of debtors is $25,754.
8. Donna, Texas
Debt-to-income ratio: 71%
You need a car to travel from small town Donna to any of the larger Texas cities. The median auto loan debt in Donna is $20,418; the median income of debtors is $28,847.
7. Mercedes, Texas
Debt-to-income ratio: 72%
This city's motto is “It Starts Here!” The median auto loan debt in Mercedes is $20,426; the median income of debtors is $28,354.
6. Dahlonega, Ga.
Debt-to-income ratio: 73%
The median auto loan debt in Dahlonega is $16,340; the median income of debtors is $22,419.
5. San Juan, Texas
Debt-to-income ratio: 74%
At 11.5 square miles from end to end, San Juan may be small, but residents need a car to get around. The median auto loan debt in San Juan is $22,137; the median income of debtors is $30,082.
4. Crosby, Texas
Debt-to-income ratio: 79%
There is public transportation in Crosby, but with a median household income of $35,508, if you want your own set of wheels, you’ll probably need to finance it. The median auto loan debt in Crosby is $23,770; the median income of debtors is $30,240.
3. Rio Grande City, Texas
Debt-to-income ratio: 79%
Nearly half the population of Rio Grande City living below the poverty line. The median auto loan debt in Rio Grande City is $25,237; the median income of debtors is $32,087.
2. Leesville, La.
Debt-to-income ratio: 80%
The median auto loan debt in Leesville is $23,422; the median income of debtors is $29,450.
1. Lake Placid, Fla.
Debt-to-income ratio: 84%
Lake Placid is also known as the “Caladium Capital of the World.” The median auto loan debt in Lake Placid is $15,257; the median income of debtors is $18,239.
The full report can be viewed here.