Arkansas variant. This is a Arkansas-specific version of the Auto Loan Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Auto Loan Calculator.
Financing a car in Arkansas means budgeting for both the loan payment and the state's $1,657 average annual auto insurance premium.
Auto loan + ownership costs in Arkansas
On a $35,000 vehicle with 10% down, you'd finance $31,500. At 7% over 5 years, that's about $624/month.
Arkansas drivers pay $1,657/year on average for insurance - about $138/month - plus the state's 9.47% combined sales tax on the purchase.
About taxes and housing in Arkansas
Arkansas has a graduated income tax that tops out at a modest rate, and the state has steadily reduced its top rate in recent years.
Arkansas has low property taxes and some of the most affordable home prices in the country.
Arkansas is home to major retail and food-processing companies, with agriculture and timber remaining important to its low-cost-of-living economy.
Worked example: $35,000 car in Arkansas
Loan $31,500 at 7% for 5 years → $624/month. Insurance ≈ $138/month. Combined monthly cost of ownership ≈ $762 before fuel and maintenance.
Quick reference
- State income tax: Top rate 4.4% on income over $24,300
- State sales tax: 6.5% (plus 2.97% avg local)
- Median home value: $200,000
- Median household income: $56,335
- Effective property tax rate: 0.61%
- Avg auto insurance: $1,657/yr
Frequently Asked Questions
How much is car insurance in Arkansas?
The Arkansas average is $1,657/year, or about $138/month.
What's a typical car payment in Arkansas?
On a $35,000 car financed at 7% over 5 years, roughly $624/month.