Auto Loan Interest Rates in WA Among Highest In US

If you're thinking about get a new car or upgrading your current set of wheels with a newer used car, you better prepare yourself for a hefty monthly payment.  The biggest piece of that equation is the car price.  Most people in the market for new and used vehicles know prices are up for a variety of reasons.

In Washington State, other government imposed factors like an additional vehicle sales and use tax on top of local and state sales taxes, vehicle registration fee (if you buy any type of EV expect to pay more), and dealer documentation fees (capped at $200 in WA) will add to the car price.

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Another Piece Of The Price Equation Puts Washington State 3rd Highest In The US

Auto loan rates in the Evergreen State are rising at the third highest rate in the United States.  Wallethub.com recently out out their list of highest rate changes from the first quarter to the end of the second quarter of 2025.  We were of three states where the loan rate increased by over two percent.

Wyoming and Vermont were the only two states that saw a higher increase than Washington's 2.02% (2.26% and 2.13% respectively).  You can see where all 50 States rank below.

There is some positive news for prospective buyers.

• The average auto loan rate in our State is the 12th lowest nationally even if 9.46% seems like a lot.  Some states, like Mississippi, are just under 13%.
• We're middle of the pack when it comes to largest decreases in auto loan debt.

Now time to go back up the rollercoaster.  Washington State has the seventh highest number of auto loan delinquencies in the US.

Your interest rate could be higher or lower that the 9.46% average due to your credit score, if you make a downpayment at the time of purchase, and the term length of your loan (rates tend to be lower on shorter term loans).

The long and short of it is if you're planning on making a change in your driveway or garage, do your diligence to find the best auto loan rate before getting locked in on something long term and higher than you were hoping.  You can read more on Wallethub's latest auto loan rate report, and their methodology, by clicking here.