Vrooom… Ka Ching! Which States Offer The Lowest Auto Loan Rates?
Since we’re talking about driving…
It’s possible to get a low car loan depending upon which state you live in. A new GoBankingRates.com study compiles the states with the lowest auto loan rates in America and exposes the worst rates nationwide.
So where are the best rates? The West Coast offers lower auto loan rates overall. The highest are in the Northeast, with the majority of states with rates of 4.01 percent and higher.
The average interest rate for a new vehicle is 3.65 percent APR nationwide, but state averages varied from a low of 3.03 percent in Michigan to a high of 5.11 percent in Rhode Island.
“A car will only go down in value, so it’s always best for the borrower to pay as little in interest as possible,” said Casey Bond, GoBankingRates.com managing editor, in a press release. “Even half a percentage point can add hundreds of dollars to the total cost of a vehicle — money that person will never get back,” Bond added.
The five states with the lowest rates are Michigan (3.03 percent), Oregon (3.04 percent), Alaska (3.04 percent), New Hampshire (3.08 percent), and South Carolina (3.15 percent). The best auto loan rates in the country, however, come from California-based Burbank City Federal Credit Union and Oregon-based First Community Credit Union, which offer a 0.99 percent APR base rate for 36-month terms.
The states with the worst average auto loan rates were Rhode Island, Connecticut, New Jersey, Massachusetts, Louisiana, West Virginia, Delaware, Mississippi, Pennsylvania and Virginia.