Auto Loan Calculator USA
Calculate Your Car Loan Payments
Plan your vehicle purchase with our comprehensive auto loan calculator
New Car Loan
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Lease vs. Buy
Auto Loan Calculator
Monthly Payment
$563
Total Loan Amount
$30,500
Total Interest Paid
$3,280
Total Cost of Vehicle
$38,280
| Loan Details | Amount |
|---|---|
| Vehicle Price | $35,000 |
| Down Payment | $5,000 |
| Trade-in Value | $2,000 |
| Sales Tax | $2,100 |
| Fees & Charges | $500 |
| Total Loan Amount | $30,500 |
Understanding Auto Loans
An auto loan is a secured loan used to purchase a vehicle. The vehicle itself serves as collateral for the loan, which means the lender can repossess it if you fail to make payments.
Types of Auto Financing
- Direct Lending: Getting a loan directly from a bank, credit union, or online lender
- Dealership Financing: Financing arranged through the car dealership
- Manufacturer Programs: Special financing offers from car manufacturers
- Lease Buyouts: Financing to purchase a vehicle at the end of a lease term
Auto Loan Terminology
- APR (Annual Percentage Rate): The annual cost of borrowing money, including interest and fees
- Down Payment: The initial upfront payment made when purchasing the vehicle
- Loan Term: The length of time you have to repay the loan (typically 36-84 months)
- Principal: The amount of money borrowed to purchase the vehicle
- Amortization: The process of paying off your loan through regular payments
Tips for Getting the Best Auto Loan
- Check your credit score before applying
- Get pre-approved from multiple lenders
- Compare offers from banks, credit unions, and dealerships
- Consider a shorter loan term to save on interest
- Make a larger down payment to reduce your monthly payments
Frequently Asked Questions
What is a good interest rate for a car loan?
Interest rates vary based on credit score, loan term, and market conditions. As of 2023, rates between 3-5% are considered excellent for borrowers with good credit. Rates below 3% are often special manufacturer promotions for new cars.
How does my credit score affect my auto loan?
Your credit score significantly impacts the interest rate you’ll qualify for. Borrowers with excellent credit (720+) typically get the lowest rates, while those with poor credit (below 630) may face higher rates or require a co-signer.
Should I choose a longer or shorter loan term?
Shorter terms (36-48 months) mean higher monthly payments but less interest paid overall. Longer terms (72-84 months) lower your monthly payment but result in more interest paid over the life of the loan.
What is the difference between leasing and buying?
Leasing is essentially renting a vehicle for a set period (typically 2-3 years) with lower monthly payments but no ownership at the end. Buying means you own the vehicle after completing payments but typically has higher monthly payments.
Use our free Auto Loan Calculator to calculate monthly payments, interest, and total cost of your car loan. Simple, accurate, and mobile-friendly tool.