Despite dwindling car sales in 2019, consumers added $18 billion in auto-loan debt in Q3 2019, says a recent report from the Federal Bank of New York. With an estimated 16.7 to 17.1 million cars expected to sell in 2020, household debt is sure to rise across the country. Unfortunately, in the cut-throat world of car sales, many consumers fall victim to deceptive practices, sky-high interest rates or unclear deal terms. As a result, they face hefty loan balances and alarmingly high debt-to-income ratios. Recently, Wallethub compared the median auto-loan balance of more than 2,500 U.S. cities to determine where Americans overspend on vehicles. For their ranking, Wallethub examined data from Transunion and the U.S. Census Bureau to determine the median income for each city based on the 2018 earnings of individuals age 16 and older who worked full-time. Median incomes were then compared to the median auto-loan debt for the city to calculate a debt-to-income score.  Scroll through the gallery to discover the 12 U.S. cities with the most auto-loan debt, according to Wallethub.  Beyond impacting financial health, car-loan debt also affects insurance rates. According to Credit Karma, total debt accounts for about 30% of a credit-based insurance score. "Insurance companies use your credit-based auto insurance score as one of many factors to determine the premiums they charge," says the personal finance company. "Based on all of the information at their disposal, including your credit-based insurance score, insurance companies then set premiums for your auto insurance policy."

Related:

• States with the worst drivers in 2019
• States with the most and fewest traffic fatalities
• The most popular electric vehicles of 2019