Looking to get a good rate on an auto loan? Go west, young man.
Last month, our sister site TheStreet reported on a new trend of car buyers traveling hundreds of miles to take over the leases of other lessees, all in the hopes of avoiding the cost of having the car delivered.
Well, that’s not the only benefit of traveling across state lines to get a car. Using extensive RateWatch data from across the country, we looked at the average interest rates charged to auto-loan seekers, and found significant variance. We gathered rate data from every bank and branch in each state; the rates assume the borrower has great credit and is not currently a customer of the bank. The three lowest state averages were all out west, with Alaska taking the top spot. Here are the top 10 performers, the states that offer consumers the best deals on auto loans.
1. Alaska 3.821
2. Arizona 4.312
3. Nevada 4.427
4. New York 4.441
5. Ohio 4.554
6. Utah 4.596
7. Rhode Island 4.641
8. Indiana 4.667
9. Washington, D.C. 4.672
10. Delaware 4.747
Now, if you aren’t already living in the Last Frontier, chances are you aren’t going to trek to Alaska just to get a few lousy points on your auto loan (especially when you consider that many of the towns there are only accessible by plane or boat). But others in the top 10 may be a bit closer to home.
Checking in at number two is the great state of Arizona. With an average rate of 4.312%, you could head across the Four Corners from Colorado (average rate: 5.654%) and potentially save about $750 over the course of the loan on a $25,000 new car. That might not seem like major savings to everyone, but in the Great Recession, every bit counts.
Number three is another southwestern state, Nevada, where you’ll get charged an average of 4.427% on a 48-month loan. If you’re in neighboring Idaho (5.474%), you can drive over the border and save some money over the life of the lease, then blow all that money in Vegas while you’re there.
On the East Coast? New York made the top five, with some solid rates in New York City from Chase and Bank of America.