With Labor Day being a high-traffic day on the road as well as a top holiday for car sales in the United States, the leading personal finance website, WalletHub, recently announced its analysis of the Strictest and Most Lenient States on High Risk Drivers in conjunction with the third quarter installment of its 2015 Auto Financing Report.
As a reminder for consumers to take caution behind the wheel, the first report focuses on comparing insurance premiums for high-risk drivers, DUI laws and penalties for various driving violations in the 50 states and the District of Columbia.
And recognizing that many consumers will be driving their new set of wheels off the dealer's lot on the same day, this report analyzed auto loan and lease offers from more than 150 financiers to help prospective buyers find the best car deals. Below are some of the key findings:
Auto Financing Report:
- Interest rates for new cars are close to reaching their lowest point in the past three years, with the average new-car loan now charging 19 percent less interest than the average used car loan.
- Overall, buyers with fair credit will end up spending about six times more to finance a vehicle ~ equating to about $6,100 in additional interest payments over the life of a $20K, five year loan.
- People in the market for a new car should begin their search for financing with car manufacturers (rates at 61% below average) and credit unions (at 30% below average). Secondary options include national banks (at 10% above average) and regional banks (at 43% above average).
- Car manufacturers continue to lack transparency when it comes to leasing offers, with the average auto maker receiving a WalletHub Transparency Score of 4.0/10.
Tell us...do you plan to be on the road or purchase a new vehicle this Labor Day?