Monthly payment, total interest, and the full picture on your auto loan.
New cars typically 5–8% · Used cars typically 7–13% depending on credit score.
Monthly Payment
$587
60 payments over 5 years
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Shorter Is Cheaper
A 36-month loan costs significantly less in interest than 72 months, even at the same rate. The payment is higher but the total cost is lower.
Credit Score Matters
A 750+ credit score can get you rates 3–5% lower than a 620 score — which can mean thousands saved on a typical car loan.
Estimates do not include taxes, registration fees, dealer fees, or gap insurance. Actual loan terms depend on your lender and credit profile.
Your monthly car payment depends on the loan amount (vehicle price minus down payment and trade-in), interest rate, and loan term. The longer the term, the lower the monthly payment — but the more total interest you pay. A $30,000 loan at 7% over 60 months costs about $594/month. Extending to 72 months drops the payment to $511/month but adds over $700 in additional interest.
As of 2025, good credit (720+) typically qualifies for rates around 5–7% for new vehicles and 7–9% for used. Excellent credit (760+) can get below 5% from credit unions or manufacturer financing. Rates above 15% are considered high — if you're being offered that, consider building credit before buying or making a larger down payment. Always shop rates from your bank, credit union, and dealership.
Financial advisors typically recommend 20% down on a new car and 10% on a used car. This prevents being 'underwater' (owing more than the car is worth) as vehicles depreciate quickly — new cars lose 15–25% of value in the first year. A larger down payment also reduces your monthly payment and total interest paid. At minimum, put enough down to cover first-year depreciation.
Shorter terms mean higher payments but less interest paid — a 60-month loan is almost always better financially than a 72 or 84-month loan. Extended terms put you at higher risk of being upside-down on the loan (owing more than the car is worth). Only consider a longer term if the monthly payment at 60 months is genuinely unaffordable. If a car requires 84 months to be affordable, the car is probably too expensive.
The 20/4/10 rule is a popular car buying guideline: put at least 20% down, finance for no more than 4 years, and keep total vehicle expenses (payment + insurance) under 10% of your gross monthly income. It's a conservative rule — many people go beyond it — but it keeps you from being financially strained by a depreciating asset. Adjust based on your income stability and other financial obligations.
If you can get a 0% or very low interest rate through manufacturer financing, financing can make sense even if you have the cash — your money earns more in investments. If the interest rate is above 4–5%, paying cash is usually better because guaranteed return on avoiding interest beats uncertain investment returns. Always compare the true cost of financing vs. the opportunity cost of spending savings.