Car Loan Calculator
Calculate your monthly car payment, total interest, and see the full amortization schedule for your auto loan.
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Title, registration, dealer fees, etc.
Understanding Car Loans
A car loan is a secured loan used to purchase a vehicle. The car serves as collateral, meaning the lender can repossess it if you default on payments.
Car loans typically have fixed interest rates and monthly payments over a set term, usually 36 to 72 months. The longer the term, the lower your monthly payment but the more interest you'll pay overall.
Factors That Affect Your Rate
Several factors influence the interest rate you'll receive on a car loan:
Credit score - Higher scores get lower rates
Loan term - Shorter terms often have lower rates
New vs. used - New cars typically get better rates
Down payment - Larger down payments may lower your rate
Lender competition - Shop around for best rates
Down Payment Benefits
A larger down payment reduces your loan amount, which means lower monthly payments and less interest paid over time. It also builds instant equity in your vehicle and may help you qualify for better rates.
Tip: Aim for at least 20% down payment to avoid being 'underwater' on your loan (owing more than the car is worth).
Using a Trade-In
Trading in your current vehicle can reduce the amount you need to finance. The trade-in value is applied directly to the purchase price, reducing your loan amount similar to a down payment.
Tips for Getting the Best Car Loan
Check your credit score before shopping and fix any errors.
Get pre-approved from banks or credit unions before visiting dealers.
Negotiate the vehicle price separately from financing terms.
Choose the shortest loan term you can afford.
Consider certified pre-owned vehicles for lower prices with warranties.
Avoid extended warranties and add-ons that increase your loan.
How to Use This Calculator
- 1
Enter the total vehicle price including any options or packages.
- 2
Input your planned down payment and any trade-in value.
- 3
Enter the interest rate (APR) offered by your lender.
- 4
Select your desired loan term in months.
- 5
Add sales tax rate and any additional fees.
Car Loan Examples
New Car - 60 Month Loan
Vehicle: $35,000 | Down: $7,000 | Rate: 6.5% | Term: 60 months
Monthly: $548 | Total Interest: $4,862 | Total Cost: $39,862
Used Car - 48 Month Loan
Vehicle: $20,000 | Down: $4,000 | Rate: 8% | Term: 48 months
Monthly: $391 | Total Interest: $2,762 | Total Cost: $22,762
With Trade-In
Vehicle: $30,000 | Down: $3,000 | Trade-In: $8,000 | Rate: 5.5% | Term: 60 months
Monthly: $363 | Total Interest: $2,757 | Total: $32,757
Frequently Asked Questions
What's a good interest rate for a car loan?
Interest rates vary based on credit score and market conditions. As of 2024, excellent credit (750+) may get rates around 5-7% for new cars. Good credit (700-749) typically sees 7-9%. Fair credit (650-699) may see 9-12% or higher.
How much should I put down on a car?
Financial experts recommend at least 20% down for new cars and 10% for used cars. This helps avoid being upside down on your loan and may qualify you for better rates.
Is a longer or shorter loan term better?
Shorter terms mean higher monthly payments but less total interest. Longer terms lower your payment but cost more overall. Choose the shortest term you can comfortably afford.
Should I get financing from the dealer or my bank?
Always get pre-approved from your bank or credit union first. This gives you negotiating power. Dealers may match or beat your rate, but having alternatives protects you.
What fees should I expect when buying a car?
Common fees include title and registration, documentation fees, dealer fees, and sales tax. These can add $1,000-$3,000 to your purchase. Some fees are negotiable.
How does my credit score affect my car loan?
Your credit score significantly impacts your interest rate. A 100-point difference can mean 2-4% higher rates, costing thousands more over the loan term.