With Presidents’ Day approaching and consumers having taken out another $28 billion in auto loan debt in the third quarter of 2021 alone, the personal-finance website WalletHub today released the first-quarter installment of its Auto Financing Report along with its in-depth analysis of 2022’s Cities that Overspend on Cars, as well as accompanying videos and expert commentary.
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|
|Rio Grande City, TX||Birmingham, MI|
|Willis, TX||Westfield, NJ|
|Bastrop, LA||San Carlos, CA|
|Donna, TX||Belmont, CA|
|Deming, NM||Manhattan Beach, CA|
|San Juan, TX||Garden City, NY|
|Uvalde, TX||Belmont, MA|
|Alice, TX||Summit, NJ|
|Livingston, TX||Chevy Chase, MD|
|San Luis, AZ||Lexington, MA|
|Mercedes, TX||Ridgewood, NJ|
|Leesville, LA||Bloomfield Hills, MI|
|Brownsville, TX||Mill Valley, CA|
|Weslaco, TX||Westport, CT|
|Moultrie, GA||Palo Alto, CA|
|Lake Placid, FL||Cupertino, CA|
|Watertown, WI||Bronxville, NY|
|Dahlonega, GA||Los Altos, CA|
|Alamo, TX||Darien, CT|
|Pharr, TX||Scarsdale, NY|
Auto Financing Report:
- Interest rates for new cars are at one of their lowest points in three years, with the average new-car loan today charging 14 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 $6,296, 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 credit unions (rates at 30 percent below average) and car manufacturers (rates at 27 percent below average). Secondary options include national banks (rates at 7 percent above average) and regional banks (rates at 23 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 4.4 out of 10.