The majority of drivers need the help of an auto loan to complete the purchase of a used car. Despite the fact that this financing option is relatively common, there are many variables that  influence the bottom line and cause uncertainty among motorists. One element to be considered is geography, as the state of residence and purchase can play a role in auto loans, along with various personal factors. 

Rates vary by state
According to a study from GoBankingRates.com, geography plays a major role in the auto loan rates you can expect to receive. In fact, the average interest rates differed greatly by state. Michigan boasted the lowest, with an average of 3.03 percent, while Rhode Island had the highest at 5.11 percent. Other states on the lower end of the spectrum included Pennsylvania and New York, which had rates of 3.84 and 3.51 percent, respectively.

New Jersey was a bit on the costly end of the spectrum, with an average interest rate of 4.47 percent – a fact that makes understanding all options even more vital. 

What you can do
No matter where you are located, there are steps you can take to get your auto loan interest rates as low as possible. Shop around for an auto loan before you check out used cars for sale. That way, you'll have a budget in mind as you research and test drive vehicles. 

If you're searching for an auction lot where you can find quality vehicles at affordable prices, look no further than NJ State Auto Auction. There you can browse through a wide array of CARFAX-certified automobiles, many of which are options that won't break your budget or can be purchased with the help of a car loan.