Auto Loan Calculator
Auto Loan Summary
Monthly Payment
$0
Loan Amount
$0
Total Interest
$0
Total Cost
$0
Down Payment
$0
Total Taxes & Fees
$0
About Auto Loans
An auto loan is a secured loan used to purchase a vehicle, where the car serves as collateral. Understanding your potential payments before visiting a dealership can help you negotiate better terms.
Current Auto Loan Rates (Sample):
| Credit Score | New Car Rate | Used Car Rate |
|---|---|---|
| Excellent (720+) | 3.5% - 5.5% | 4.0% - 6.5% |
| Good (680-719) | 5.0% - 7.0% | 6.0% - 9.0% |
| Fair (640-679) | 7.0% - 10% | 9.0% - 13% |
| Poor (639 or below) | 10%+ | 13%+ |
How Auto Loans Work:
- The vehicle serves as collateral - if you default, the lender can repossess it
- Shorter loan terms (36-48 months) have lower interest rates
- Longer terms (72-84 months) reduce monthly payments but increase total interest
- Most lenders require a down payment of 10-20%
- New cars typically have lower interest rates than used cars
Tips for Getting the Best Auto Loan:
- Check your credit score and report before applying
- Get pre-approved from a bank or credit union before visiting dealers
- Compare offers from multiple lenders
- Aim for the shortest term you can afford
- Put at least 20% down to avoid being "upside down" on your loan
- Consider gap insurance if your down payment is small