Auto Loan Calculator
Calculate your monthly car loan payment including vehicle price, down payment, trade-in value, sales tax, fees, and interest — with full amortization.
Frequently Asked Questions
What are current auto loan interest rates in 2024?
Average auto loan rates in 2024: new car 60-month loan — 5.27% (excellent credit 750+), 7.5% (good 690–749), 11.5% (fair 630–689), 16%+ (poor under 630). Used car rates run 1.5–3% higher. Credit unions typically offer rates 1–2% lower than dealerships. Always get pre-approved from your bank before negotiating at the dealer.
How much should I put down on a car?
Financial advisors typically recommend 20% down for a new car and 10% for used. A $30,000 new car: put down $6,000. This avoids being "underwater" (owing more than the car is worth), reduces monthly payments, and lowers total interest. Many lenders offer better rates with larger down payments.
How does a trade-in value reduce my auto loan?
Trade-in value is deducted from the car's purchase price before financing. Trading in a $10,000 car on a $30,000 purchase means financing only $20,000 (minus any additional down payment). This reduces monthly payments and total interest. Get independent trade-in valuations from CarMax, KBB, or Edmunds before visiting the dealership.
What is a good auto loan term length?
The average new car loan term is now 72 months, but 36–48 months is financially optimal. A $30,000 loan at 7%: 48-month payment = $717/month, total interest = $4,416. 72-month payment = $514/month but total interest = $7,035. The 72-month loan costs $2,619 more. Longer terms also leave you in negative equity longer.
Should I finance through the dealer or my bank?
Dealers often mark up the interest rate (dealer reserve), keeping the difference as profit. Getting pre-approved by your bank or credit union first gives you a benchmark rate to negotiate against. Dealer financing promotions (0% for 12 months) can be genuinely good deals — but only if you can pay it off before the promotional period ends.