Auto Loan Payment Calculator
Accurately calculate your car loan payments for smarter car buying.
Down Payment Amount: $6,000
💡 Trade-in value reduces loan amount
Sales Tax Amount: $2,400
Loan Amount
$26,400
= $32,400 - $6,000 - $0
💡 Tips:
• Higher down payment = lower loan and interest
• Shorter loan term = less total interest
• Good credit score gets better rates
Monthly Payment
$504
Total Payments
$30,256
Total Interest
$3,856
Total Cost
$38,656
Current Plan
60 months
Monthly: $504
Interest: $3,856
Shorter Term
48 months
Monthly: $614
Interest Saved: $786
Higher Down Payment 30%
$9,000
Monthly: $447
Interest Saved: $438
🚗 Car Loan Guide
💰 Down Payment Strategy
Recommended Down Payment: 20-30%
- Reduce monthly payment pressure and total interest
- Avoid negative equity from vehicle depreciation
- Easier loan approval and better interest rates
- Higher down payment = lower loan risk
🔄 Trade-In
Trade-In Value Assessment
- Use Kelley Blue Book (KBB) or Edmunds for estimates
- Consider vehicle condition, mileage, and market demand
- Compare dealer quotes vs. private sale prices
- Trade-in directly reduces new car price and loan amount
📄 Sales Tax Information
State Tax Rate Variations
- US state sales tax rates: 0%-10%
- Some states offer tax credits for electric vehicles
- Tax is usually included in the loan amount
- Check local tax rates and incentives before purchasing
⏱️ Loan Term Optimization
Term Selection Recommendations
- 36-48 months: 36-48 months: Higher monthly payment, but less total interest
- 60 months: 60 months: Common choice balancing payment and interest
- 72-84 months: 72-84 months: Lower monthly payment, but significantly higher total interest
- Avoid loan terms exceeding vehicle's expected lifespan
📌 Auto Loan FAQs
Q: How to get the best loan rate?
A: Maintain good credit score (700+), increase down payment, choose shorter loan term, compare quotes from multiple banks and credit unions, consider dealer promotions (like 0% APR), avoid multiple hard inquiries on credit report.
Q: New or used car loan?
A: New car loans typically have lower rates (lower risk for lenders), but used cars depreciate slower with lower total cost. Certified Pre-Owned (CPO) offers quality assurance at lower prices. Choose based on budget and needs.
Q: What is GAP insurance?
A: Guaranteed Asset Protection insurance covers the gap between insurance payout and loan balance when vehicle is totaled. Recommended for low down payment, long-term loans, or fast-depreciating vehicles. New cars depreciate quickly in first few years—consider purchasing.
Q: What other costs come with auto loans?
A: Beyond car price and loan interest, consider: full coverage insurance (usually required during loan), vehicle registration fees, license plate fees, dealer processing fees, extended warranty (optional). These may add $2,000-$5,000.
💡 Money-Saving Tips
- ✅ Early Repayment: Without prepayment penalties, extra payments significantly reduce interest
- ✅ Bi-weekly Payments: Makes one extra monthly payment per year, shortening loan term
- ✅ Credit Union Loans: Usually offer lower rates than banks and dealers
- ✅ End-of-Quarter Purchase: Dealers offer better deals when pushing for sales quotas
- ✅ Shop Around: Get quotes from at least 3 lenders before deciding