Here’s How Much an Auto Loan Will Cost Retirees For a New or Used Car In California

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California ranks as one of the most expensive states in the country when it comes to average home prices and living costs, which makes it challenging for retirees without a lot of money to spend. But if you’re a retiree looking to buy a car in the Golden State, you’ll find prices about the same as anywhere else. Unlike other sectors of the economy, car prices and lending rates are fairly uniform across the United States.

That rule applies to both new and used cars. GOBankingRates recently conducted a study to determine the average price of a car loan in each state for a variety of new vehicles, including sedans, trucks, SUVs and electric vehicles. Here are some of the key takeaways:

• The national average for the price of a new car is $47,480.
• The national average for a down payment is around 20%.
• The average amount a new car is financed for is $37,984.

Here’s a further breakdown of costs in California specifically:

• Total average cost for an auto loan for a new car is $47,231.
• Average monthly car payment across all types is $751.

Average monthly payment for specific vehicles:

• New truck: $761
• New SUV: $743
• New EV: $717
• New sedan: $762

To put those figures in perspective, here’s a look at how California stacks up against other big states:

As the above table shows, average payments in California compare favorably to other sections of the country. You’ll find similar data when it comes to used cars.

Nationally, the average monthly payment for a used car was $523 during the first quarter of 2024, according to LendingTree. Retirees can expect to pay pretty close to average in California, based on a separate study of used-car loan rates from GOBankingRates.

Here are the average annual percentage rates (APRs) for used vehicle loans in California:

• All used vehicles: 11.16%
• SUVs: 10.48%
• Trucks: 10.23%
• EVs: 12.26%
• Sedans: 12.21%

Again, it helps to show how California compares to other big states around the country in terms of average costs to determine whether you can find better deals elsewhere. Based on the following table, loan terms for a used car in California compare favorably to certain other states.

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