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You might wonder what the cost of a monthly auto loan looks like in your state.
The findings show that used cars offer substantially lower monthly payments but have higher interest rates.
Newer vehicles come with lower interest rates, but their higher price points mean a larger monthly payment.
Here is the average loan rate, overall cost and monthly payment for new and used vehicles in Colorado.
Next, check out thecost of owning a car for one year in every state.
These tips may help you obtain a car within your budget.
A good rule of thumb is to keep payments below 15% of your monthly income.
Check Your Credit Score
People with good credit qualify for thecheapest auto loans.
Consider disputing any inaccurate information with the credit bureaus.
If the information is correct but your score is too low, you could take steps to improve it.
For instance, you might pay down your debt if your credit utilization is high.
Shopping with a preapproved loan incentivizes dealers to offer better financing.
The dealer also may provide a better interest rate.
If cheaper financing isnt possible, they wont waste time showing you vehicles outside your budget.
Be wary ofextended warranties and maintenance contractsthat dealers promote.
It may unnecessarily increase the total of your loan.
Paying more upfront will lower your monthly payment and the amount youll pay in interest for the car.
Methodology: For this study, GOBankingRates analyzed each U.S. State to find the average auto loan rates.
The monthly and total auto loan costs can both be calculated for all the states and car types.
All data was collected on and is up to date as of Sept. 5, 2024.
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