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.
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.