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Downtown New Haven, Indiana

Wednesday, February 22, 2017

From WalletHub:

With President’s Day approaching and the combination of rising auto sales and low interest rates encouraging more lending to subprime borrowers, the personal-finance website WalletHub today released the first-quarter installment of its Auto Financing Report in conjunction with its in-depth analysis of 2017’s Cities that Overspend on Cars.

Below are some of our key findings from each of the two reports:

Cities that Overspend on Cars Cities that Spend the Least on Cars
Ruston, LA Scarsdale, NY
Williamsburg, VA Cupertino, CA
Ellensburg, WA Hoboken, NJ
Morgantown, WV Saratoga, CA
College Station, TX Chevy Chase, MD
Rio Grande City, TX Bronxville, NY
Kingsville, TX Lexington, MA
Warrensburg, MO Los Altos, CA
Milledgeville, GA McLean, VA
Mercedes, TX Manhattan Beach, CA
Deming, NM Palo Alto, CA
Stillwater, OK Foster City, CA
Murray, KY Ridgewood, NJ
Newark, DE Westport, CT
Bloomington, IN Powell, OH
Stephenville, TX Winchester, MA
San Marcos, TX Westfield, NJ
San Luis, AZ Garden City, NY
Delano, CA Birmingham, MI
Dahlonega, GA Plainview, NY

Auto Financing Report:

  • Interest rates for new cars are near their lowest point in three years, with the average new-car loan today charging 16 percent less interest than the average used-car loan.
  • Compared with buyers who have excellent credit, those with fair credit will spend about six times more, or about $6,403, in interest over the life of a five-year, $20,000 loan when financing a vehicle.
  • The best options for financing a new car include car manufacturers (rates at 43 percent below average) and credit unions (rate at 25 percent below average). Secondary options include national banks (rates at 2 percent above average) and regional banks (rates at 29 percent above average).
  • Car manufacturers continue to lack transparency when it comes to leasing offers, with the average automaker receiving a WalletHub Transparency Score of 4.68 out of 10.

We recommend prospective car buyers check their credit scores for free on WalletHub and leverage a Car Payment Calculator to determine an auto-loan payment and timeline they can afford.

Please let me know if you have any questions about either report’s findings or if you would like to schedule a phone, Skype or in-studio interview with one of our experts. Full data sets for specific cities in our Cities that Overspend on Cars report are also available upon request.

POSTED: 02/17/17 at 11:07 am. FILED UNDER: Business, News