The states that have had some of the lowest mortgage rates recently include Montana, New York, and South Dakota. But it varies.
If you're looking for the lowest initial cost, no state can beat Florida. When it comes to used car sales, Florida tends to has the cheapest prices. Florida's low initial vehicle costs are due to a variety of factors. First, Florida has one of the largest populations of older people.
Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.
There is no sales tax on any vehicle purchased in Oregon. If you are buying a car in another state, make sure the dealer fills out paperwork for Oregon residents so that you do not have to pay sales tax.
Pros. May help you get the best terms: Dealers generally work with a limited set of lenders, who may not offer the ideal loan terms. In addition, dealers may add a markup to the annual percentage rate (APR) as compensation for arranging the loan. When you work directly with a bank, you won't have to worry about this.
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Mississippi has the lowest average FICO credit score, with an average FICO score of 672.
As you can see, New Hampshire is the most affordable state for new and used car purchases. It's worth noting that Florida and Oregon are viable choices. Florida's lowest starting cost can explain its unanticipated expenses. Furthermore, Florida cars will be in much better shape, which is a huge long-term benefit.
Some states offer cheaper cars due to various factors such as lower sales tax rates, fewer regulatory fees, and less expensive insurance premiums. States with fewer environmental regulations or less aggressive tax policies often have lower overall car costs.
Buying a vehicle in a state with lower sales tax can be tempting. Unfortunately, you can't save money this way. Sales tax is almost always paid in the state you register the vehicle, not the state you buy it in, so you'll still have to pay sales tax to register the car in your home state.
Nevada has the highest car tax rate in the nation (8.25%), but Alaska, Delaware, Montana, New Hampshire, and Oregon don't charge any car tax at all.
(Sept. 5, 2024) – This year's Your Driving Cost (YDC) study reveals that the total cost to own and operate a new vehicle is $12,297 or $1,024.71 monthly, an increase of $115 from 2023. The leading cost culprits for buyers are depreciation and finance charges.
How much would a $30,000 car cost per month? This all depends on the sales tax, the down payment, the interest rate and the length of the loan. But just as a ballpark estimate, assuming $3,000 down, an interest rate of 5.8% and a 60-month loan, the monthly payment would be about $520.
How Much Does 2.9% APR Cost? On a $40,000 SUV, a 60-month (5-year) loan at 2.9% would cost approximately $3,018 in interest. On a 72-month (6-year) loan, it would increase to $3,629. We've even seen 84-month financing incentives that could translate to $4,245 in interest.