HOW MUCH AN AUTO LOAN WILL COST YOU FOR A USED CAR IN THESE 3 WEST COAST STATES

There are many benefits to buying a used car instead of a new one, including a lower cost, less depreciation and lower insurance rates. If you choose this route, the first step toward finding the used car that’s right for you is understanding your financing options.

GOBankingRates recently conducted a study to investigate average auto loan rates in California, Oregon, Washington and every other U.S. state. The interest rates and loan costs were broken down according to commonly purchased vehicle types, such as SUVs, trucks, electric cars and sedans.

Check Out: These 10 Used Cars Will Last Longer Than an Average New Vehicle

So before you go shopping for a used car, take a moment to research the average auto loan rates for vehicles in your area. With a little preparation, you can establish a more realistic budget and may even be able to negotiate a better price at the dealership.

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How Much Does an Average Used Car Cost?

Now could be a good time to buy a used car, with prices falling by an average of 10% over the past year. Electric vehicle prices, in particular, have dropped by 17% over the past year, as the supply has outpaced demand. On average, used cars are roughly half the price of new cars, according to the latest national sales data.

Used car national averages:

Average price: $25,415
Average amount financed: $20,332

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California

Used SUV

Average auto loan rate: 10.48%
Average auto loan total cost: $25,761
Average auto loan monthly cost: $437

Used Truck

Average auto loan rate: 10.23%
Average auto loan total cost: $25,727
Average auto loan monthly cost: $434

Used Electric Vehicle

Average auto loan rate: 12.26%
Average auto loan total cost: $26,009
Average auto loan monthly cost: $455

Used Sedan

Average auto loan rate: 12.21%
Average auto loan total cost: $26,002
Average auto loan monthly cost: $454

State Average for All Used Cars

Average auto loan rate: 11.16%
Average auto loan total cost: $25,855
Average auto loan monthly cost: $444

Oregon

Used SUV

Average auto loan rate: 9.71%
Average auto loan total cost: $25,656
Average auto loan monthly cost: $429

Used Truck

Average auto loan rate: 9.65%
Average auto loan total cost: $25,648
Average auto loan monthly cost: $429

Used Electric Vehicle

Average auto loan rate: 9.84%
Average auto loan total cost: $25,674
Average auto loan monthly cost: $430

Used Sedan

Average auto loan rate: 11.15%
Average auto loan total cost: $25,854
Average auto loan monthly cost: $444

State Average for All Used Cars

Average auto loan rate: 10.05%
Average auto loan total cost: $25,702
Average auto loan monthly cost: $432

Washington

Used SUV

Average auto loan rate: 9.25%
Average auto loan total cost: $25,593
Average auto loan monthly cost: $425

Used Truck

Average auto loan rate: 8.61%
Average auto loan total cost: $25,506
Average auto loan monthly cost: $418

Used Electric Vehicle

Average auto loan rate: 7.50%
Average auto loan total cost: $25,357
Average auto loan monthly cost: $407

Used Sedan

Average auto loan rate: 10.56%
Average auto loan total cost: $25,772
Average auto loan monthly cost: $438

State Average for All Used Cars

Average auto loan rate: 9.41%
Average auto loan total cost: $25,615
Average auto loan monthly cost: $426

Tips for Finding an Affordable Car

Even though buying a used car is one of the main ways to reduce the total cost of car ownership, you can increase your savings even further by incorporating some of these tips.

Expand your search: If you live in an expensive state for car ownership, like California, you may be able to find more affordable options by shopping in neighboring states with lower prices.
Choose a reliable brand: Brands that have a reputation for being reliable over time are a smart choice for buyers who are focused on affordability. Research different brands and models to learn more about how frequently they require repairs and maintenance.
Look up vehicle history reports: Don’t be fooled by rock-bottom prices. If a deal seems too good to be true, it may be the case that the car has a history of accidents or maintenance issues.
Consider private sellers or online marketplaces: You can often find more affordable deals by buying directly from an individual, but this comes with some risks as well. Always arrange for an inspection and research the vehicle’s history before making a purchase.
Don’t forget to negotiate: Whether you’re buying a used car from a dealer or a private seller who lives down the street, it’s always a good idea to come prepared with knowledge of the market so that you can negotiate the best deal. Use the auto loan data above and additional information from your personal research to gain an advantage in your negotiations.

Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average auto loan rates. Using Edmunds.com’s car loan rates from August 2024, the auto loan rates were found for SUVs, trucks, electric cars and sedans, as well as the overall average for used and new cars for each state. The average total cost for an auto loan can be calculated by using the average used car and new car price, as sourced from Kelley Blue Book, assuming a 20% down payment and using five years for the loan term. The monthly and total auto loan costs can both be calculated for all states and car types. Using these filters, the total cost for an auto loan can be calculated for each state with different car types. All data was collected on and is up to date as of Sept. 5, 2024.

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This article originally appeared on GOBankingRates.com: How Much an Auto Loan Will Cost You for a Used Car in These 3 West Coast States

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