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Michigan, Oregon, Alaska Offer Lowest Auto Loan Rates in United States

August 21, 2013
2 min to read


Los Angeles - A new GoBankingRates.com study exposes the states with the lowest auto loan rates in America. The study investigated the best and worst rates nationwide, with the West Coast boasting lower auto loan rates overall, while the North East ended up with the majority of states with rates of 4.01% and higher.


See the geographic breakdown here.

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Although the average interest rate for a new vehicle is 3.65% APR nationwide, state averages varied from a low of 3.03% in Michigan to a high of 5.11% 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, managing editor, GoBankingRates.com. "Even half a percentage point can add hundreds of dollars to the total cost of a vehicle - money that person will never get back."


The states with the lowest average auto loan rates ranked as follows:


  • Michigan: 3.03%

  • Oregon: 3.04%

  • Alaska: 3.04%

  • New Hampshire: 3.08%

  • South Carolina: 3.15%

  • Vermont: 3.17%

  • Oklahoma: 3.23%

  • Utah: 3.28%

  • Washington: 3.29%

  • North Carolina: 3.31%




Additional Findings

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The states with the worst average auto loan rates were Rhode Island, Connecticut, New Jersey, Massachusetts, Louisiana, West Virginia, Delaware, Mississippi, Pennsylvania and Virginia.


The best auto loan rates in the country come from California-based Burbank City Federal Credit Union and Oregon-based First Community Credit Union, which offer a 0.99% APR base rate for 36-month terms.


The study lists the best auto rates for 36-, 48- and 60-month terms for each of the top states.

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