Michigan and Rhode Island is the best and worst states, respectively, to finance a new car, rankings by GoBankingRates.com show.
GoBankingRates.com, an online consumer financial resource, studied the base interest rates on every new-car loan in the U.S. The rankings came after computing for the aggregate average loan rate for each state using the statewide average rate.
Michigan, where the auto industry is markedly thriving, is crowned the best state to finance a new car with 3.03 percent aggregate average loan rate.
Along with Michigan, here are other states where consumers can find the lowest new-auto loan rates:
1. Michigan (3.03%)
2. Oregon (3.04%)
3. Alaska (3.04%)
4. New Hampshire (3.08%)
5. South Carolina (3.15%)
6. Vermont (3.17%)
7. Oklahoma (3.23%)
8. Utah (3.28%)
9. Washington (3.29%)
10. North Carolina (3.31%)
Meanwhile, Rhode Island is named the worst state to finance a new car as it possesses the highest aggregate average loan rate of 5.11 percent.
Here is the complete list of top 10 states with the highest new-car loan rates:
1. Rhode Island (5.11%)
2. Connecticut (4.82%)
3. New Jersey (4.47%)
4. Massachusetts (4.21%)
5. Louisiana (4.20%)
6. West Virginia (4.16%)
7. Delaware (4.14%)
8. Washington DC (3.95%)
9. Mississippi (3.91%)
10. Pennsylvania (3.84%)
GoBankingRates.com also identified some lenders in each state where consumers can find the lowest possible interest rates for new cars.
In Michigan, borrowers can find the lowest rates in Community West Credit Union, Navy Federal Credit Union and Michigan Educational Credit Union.
Meanwhile, new-auto loan seekers in Rhode Island can still get low interest rates in USAA FSB and Navy Federal Credit Union despite their state being the worst place to finance a new car.
Latest Experian data shows that the average rate on new cars in the U.S. is 4.46 percent in the second quarter of this year. It is lower than last year’s average of 4.63 percent.