Auto Loan Financing Calculator


Use our Auto Loan Financing Calculator to see your monthly payments based on a chosen term length and interest rates. First select your State or Province (for the local Sales Tax), enter an intrest rate to may qualify for and other data you choose.


Monthly payments :

$ monthly_payment | number_format(2, ‘.’, ‘,’)

Principal:$ total_principal_amount | number_format(2, ‘.’, ‘,’)
Total Interest:$ total_interest_amount | number_format(2, ‘.’, ‘,’)
Total loan payment:$ total_amount_from_bank | number_format(2, ‘.’, ‘,’)

What's an auto loan?

An auto loan is a form of financing designed to help individuals purchase a new or used vehicle. It is structured like other forms of personal loans and involves an agreement between the borrower, the lender, and usually the dealer from where the vehicle was purchased.

The agreement outlines the terms, interest rate, and amount of money borrowed for the purpose of purchasing a vehicle. In most cases, buyers will put down a deposit and then pay off their auto loan in monthly payments over an agreed upon period of time. This form of financing allows individuals to own a vehicle without having to pay its full price upfront.

Car loan interest, how do they work?

Car loan interest works like any other loan. The lender charges a certain amount as an interest on the borrowed amount of money. How much you pay depends on the length of your loan, and various factors such as the APR (annual percentage rate) calculate exactly what your total loan repayment amount will be down to each month.

APR is determined by factors such as your credit score, the amount of money you are borrowing, any fees being paid up front and the terms, or duration of your loan. It's possible to get a car loan with 0% interest if you meet all the criteria set out by a lender. Shopping around for different lenders and comparing different lenders' rates can help you find the best car loan offer according to your requirements.

What is a best interest rate on a car loan?

What is a good interest rate on a car loan? Finding the best rate can depend on various factors, including credit score, loan term and lender type. Potential borrowers should have realistic expectations when it comes to their interest rates.

For example, borrowers with lower credit scores generally get higher rates since lenders view them as more of a risk. Additionally, longer loan terms will usually result in higher interest rates due to the extended amount of time that the loan is being held by the lender. Borrowers should also remember that different lenders may offer different interest rates due to varying policies, so researching one’s options is key to finding the best rate possible.

What credit score do I need for a car loan?

When considering a car loan, understanding what credit score is required is essential. Generally, lenders will consider different range of scores for each type of loan; for most auto loans, this typically falls between 500 and 720.

However, it's important to remember that some lenders may require more or less depending on the specific terms of the loan. A higher credit score can make an individual a more desirable borrower and thus help secure more favorable conditions such as a lower interest rate or better repayment options. Therefore, if you are in the market for a new car loan, it's wise to assess your current credit score and take appropriate action to improve it if needed.

Credit levelFico score
Very Good724-759
Credit score table

Can I still get a car loan if I have a bad credit?

It is possible to get a car loan with bad credit, though you may be looking at higher interest rates or possibly a smaller loan. Depending on someone's individual situation, lenders may be willing to work with them if they can show that their credit scores were impacted by an unforeseeable event like job loss.

Having a co-signer could also improve the chances of obtaining financing for a car loan. Alternatively, some states offer special bad credit auto loans through credit unions and other lenders willing to provide financing at more competitive rates. If you have bad credit and are looking to buy a vehicle, researching all your options is essential in order to find the best rate and financing terms available.

Why is the interest rates so much more on used car loans than on loans for new car ?

Why are interest rates higher for used car loans when compared to new car loans? Primarily, it is due to risk. In general, default rates on used car loans tend to be much higher than those on new car loans.

Furthermore, lenders view the associated collateral (the vehicle) as being worth less than a new vehicle; thus, they charge a higher rate of interest to compensate for the added risk of default.

Additionally, because dealer financing is vastly different from conventional residential mortgage banking products and services, these alternative financial products often have varying degrees of liquidity and elevated levels of complexity – all elements that raise interest rates. For these reasons, lenders set higher interest rates on used car loans than what is charged for new cars.