Houston Car Buyers Pay Nearly $300 More On Interest Than State Average
by: Andrew Schneider, August 29, 2013 5:08:00 am
The study ranked the average annual percentage rates, or APRs, for loans on new vehicles in the top 100 U.S. cities by population — from least to most expensive. Houston came in at number 61.
GoBankingRates’ local banking expert, Amanda Garcia, compared the average interest rates borrowers could expect to pay for a four-year loan on a $20,000 vehicle. That worked out to an APR of 4.17% for Houston.
“Generally, you’ll pay a total of $1,748 in interest over the four-year loan. Whereas, with the Texas statewide average, which was at 3.5% APR, the total interest you would pay is $1,461. So there’s almost a $300 difference.”
Car buyers can still get a better deal on a loan in Houston than in most other major Texas cities. In fact, Laredo’s rates ranked worst in the country. The cheapest rates on offer were in Saint Louis, Missouri.