Here’s How Much an Auto Loan Will Cost Retirees for a New or Used Car in New York
For many seniors who are transitioning to retirement, there will be several adjustments to make and a lot of lifestyle changes, such as switching to a fixed income. That’s why being careful and making calculated and sensible choices when it comes to finances is crucial, especially with big ticket items, such as a car and a car loan.
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And for retirees who live in states with a high cost of living, such as New York, this becomes even more important.
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Retirees, Auto Loans, and Inflation
A lot of factors have hindered the ability to save for retirement in the past years for many Americans, particularly as inflation and high rates have left little to set aside.
That’s why when it comes to getting an auto loan — either for a new or a used vehicle — knowing the exact numbers matters and can make a huge difference in seniors’ financial well-being.
To put this in perspective, in 2022, “less than a quarter of adults 65 and older held vehicle installment loans in 2022,” according to MarketWatch. Yet, the amount of debt these seniors held was very high.
Indeed, seniors in the 65-to-77 age bracket had $23,690 in car loan debt in 2022. This decreased to $17,020 for seniors age 75 and older, per MarketWatch.
Here’s how much an auto loan will cost retirees for a new or used car in New York, according to a recent GOBankingRates survey.
New Car
Total average cost for an auto loan for a new car: $47,171
Average monthly car payment: $747
New Truck
Average total cost: $47,181
Average monthly payment: $747
New SUV
Average total cost: $47,095
Average monthly payment: $741
New Electric Car
Average total cost: $46,867
Average monthly payment: $725
New Sedan
Average total cost: $47,415
Average monthly payment: $764
Annual Percentage Rate for a Used Car
Average annual percentage rate for a used SUV: 10.40%
Average annual percentage rate for a used truck: 9.66%
Average annual percentage rate for a used electric vehicle: 10.67%
Average annual percentage rate for a used sedan: 11.23%
State average annual percentage rate for a used vehicle: 10.47%
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This article originally appeared on GOBankingRates.com: Here’s How Much an Auto Loan Will Cost Retirees for a New or Used Car in New York
