Houston Car Buyers Pay Nearly $300 More On Interest Than State Average

A study by GoBankingRates.com finds that Houston is one of the most expensive cities in the country in which to finance a new car.

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. 

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...