US Car Loan Calculator

Three numbers set the monthly: loan amount, interest rate, and term. A $35,000 loan at 7% over 60 months is $693/month and $6,580 total interest. The same $35,000 at 7% stretched to 84 months drops the monthly to $529 but balloons total interest to $9,440 - $2,860 more. Lengthening the term feels like a discount but it isn't; it's just spreading the bill thinner with more interest along the way.

Average new-car loan rates in 2024 are 7-9% for prime credit, 11-15% for subprime. Used-car rates run 1-2% higher than new. Down payments of 10-20% are typical; 0% down stretches monthly payments and means starting underwater (owing more than the car is worth) for the first 1-2 years.

On top of the negotiated vehicle price, expect: sales tax (5-10% in most states, applied to the full price), title and registration ($300-700), dealer fees ($300-1,000 - some non-negotiable, many are negotiable), and either gap insurance (covers the underwater gap if the car is totalled in early years) or a service contract. None of these are required to be financed, but dealers usually roll them into the loan.

Walking off a lot with a $30,000 car often means a $33,000-35,000 loan once tax and fees are added. Plan for this so the loan size matches what you negotiated. Use the [US Mortgage Calculator](/us-mortgage-calculator) framework for sanity-checking auto loan math too - the same principal-and-interest mechanics apply.

New cars depreciate roughly 20% in year one, 50% by year five. Buying a 2-3 year-old used car captures most of that depreciation for someone else's account. Certified pre-owned (CPO) programs offer warranty extensions on used cars for a small premium, often the sweet spot for value.

Leasing is essentially a long rental: lower monthly payment but no ownership at the end. The 36-month lease cycle works if you want a new car every 3 years and you stay within mileage limits (typically 10-15k/year, with overage charges of 15-30 cents/mile). Leasing rarely makes financial sense if you tend to keep cars 5+ years - you would pay 30-40% less over a decade by buying.

Get pre-approved by your bank or a credit union BEFORE setting foot on a dealer lot. The pre-approval gives you the rate to beat and removes the dealer's biggest profit lever (financing markup). A pre-approval at 6.5% means the dealer either matches it or you walk away with the credit-union loan.

Credit unions consistently beat dealer financing by 1-3 percentage points on average, occasionally more for borderline credit. On a $30,000 5-year loan, 1 percentage point lower saves about $850 over the loan life. Even with a soft hard credit pull, getting 2-3 pre-approvals before shopping is worth the effort.