How Much an Auto Loan Will Cost You for a New Car in These 3 West Coast States
By Preston Hartwick,
1 days ago
alfexe / Getty Images/iStockphoto
The average number of vehicles in the U.S. has steadily increased over the past several decades, with more than 9 out of 10 households having at least one car as of 2022. Roughly a quarter of households had three or more vehicles in 2022, and the number of multi-car households is on the rise.
If you’re reading this, chances are high that you’re either buying your first car or adding an additional one to your household. If that’s the case, the first step to buying a new car is understanding your financing options.
GOBankingRates recently conducted a study on the average auto loan rates across the U.S., including California, Oregon and Washington. The study broke down interest rates and loan costs by commonly purchased vehicle type — SUVs, trucks, electric cars and sedans — based on a 20% down payment and five-year repayment term.
The average new car costs around $47,000, but auto loans and interest rates vary depending on where you live. For example, new trucks in California come with an average auto loan rate of 7.51%, while trucks in Washington can be had at rates around 6.41%.
Buying a new car doesn’t have to break your budget. Follow these tips to find an affordable car that makes sense for your needs and financial situation.
Stick to your budget: Remember that there are lots of costs associated with car ownership besides the initial purchase price. Plan for recurring costs like insurance, gas and repairs and work these into your budget.
Shop around: Don’t be pressured into buying a car at the first dealership you visit. Comparing the prices on the same model at different places can lead to a significant discount.
Negotiate: Dealerships will be more likely to be flexible with their pricing if you show that you understand the market average and know what their competitors are charging.
Be patient: Wait for end-of-season sales or off-peak months to buy at a lower price when demand slows down.
Focus on value: It’s easy to get distracted by luxury add-ons, but the latest comfort and technology features can dramatically increase the price of a vehicle. Figure out what features are most important to you and find a car that offers them within your price range.
Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average auto loan rates. Using Edmunds.com’s car loan rates from August 2024, the auto loan rates were found for SUVs, trucks, electric cars and sedans, as well as the overall average for used and new cars for each state. The average total cost for an auto loan can be calculated by using the average used car and new car price, as sourced from Kelley Blue Book, assuming a 20% down payment, and using five years for the loan term. The monthly and total auto loan costs can both be calculated for all states and car types. Using these filters, the total cost for an auto loan can be calculated for each state with different car types. All data was collected on and is up to date as of Sept. 5, 2024.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
