10 States With the Lowest Auto Finance Interest Rates

Despite interest rates starting to notch upward, car buyers can still land some pretty low interest rates — just how low, though, depends on a shopper’s location.

Using its interest rate database and auto loan rates from July 24, GoBankingRates.com yesterday put out a list of the 10 best states for auto financing. Michigan was No. 1 with 3.03%, while North Carolina ranked No. 10 with 3.31%.

GoBankingRates aggregated the base interest rates on all new-car loan products in the country, and then averaged them by state to come up with the ranking. It also listed the top lenders who offered the lowest interest rates for common loan terms.

Here are the Top 10 states and those aforementioned lenders. Credit unions, particularly Navy Federal Credit Union and USAA Federal Savings Bank (FSB), dominated the list, showing up in nearly every Top 10 state. 

Below the list is GoBankingRates.com’s full state-by-state breakdown of interest rates last month. Rhode Island had that highest interest rate with 5.11%.

1. Michigan — 3.03%
36-month loans: Community West Credit Union — 1.49%
48-month loans: Navy FCU — 1.49%
60-month loans: Michigan Educational Credit Union — 1.75%

2. Oregon — 3.04%
36-month loans: First Community Credit Union (FCCU) — 0.99%
48-month loans: USAA FSB — 2.24%
60-month loans: FCCU — 1.49%

3. Alaska — 3.04%
36-month loans: Navy FCU — 1.49%
48-month loans: USAA FSB — 2.24%
60-month loans: Navy FCU — 1.79%

4. New Hampshire — 3.08%
36-month loans: New Hampshire Federal Credit Union — 1.37%
48-month loans: New Hampshire FCU — 1.37%
60-month loans: New Hampshire FCU — 1.37%

5. South Carolina — 3.15%
36-month loans: Navy FCU — 1.49%
48-month loans: USAA FSB — 2.24%
60-month loans: Navy FCU — 1.79%

6. Vermont — 3.17%
36-month loans: Navy FCU — 1.49%
48-month loans: USAA FSB — 2.24%
60-month loans: Navy FCU — 1.79%

7. Oklahoma —3.23%
36-month loans: Navy FCU — 1.49%
48-month loans: USAA FSB — 2.24%
60-month loans: Navy FCU — 1.79%

8. Utah — 3.28%
36-month loans: Navy FCU — 1.49%
48-month loans: USAA FSB — 2.24%
60-month loans: Navy FCU — 1.79%

9. Washington — 3.29%
36-month loans: Navy FCU — 1.49%
48-month loans: Global Credit Union — 1.75%
60-month loans: Global Credit Union — 1.75%

10. North Carolina — 3.31%
36-month loans: Navy FCU — 1.49%
48-month loans: Truliant Federal Credit Union — 1.99%
60-month loans: Navy FCU — 1.79%