How to Use the Auto Loan Calculator
Enter the vehicle price, your down payment, any trade-in value, sales tax rate, fees, interest rate, and loan term. The calculator factors in how trade-in value reduces your taxable amount in most states, then computes your exact monthly payment and total cost.
New vs. Used Car Loan Rates
Used car loans typically carry higher interest rates than new car loans — often 2-4 percentage points higher — because lenders view used vehicles as higher risk due to faster depreciation and uncertain condition history.
5 Steps to a Better Car Loan
- 1Check your credit score before shopping — it's the biggest factor in your rate
- 2Get pre-approved by your bank or credit union before visiting dealers
- 3Negotiate the vehicle price separately from the financing terms
- 4Compare the dealer's financing offer against your pre-approval — take the lower APR
- 5Avoid extending the loan term just to lower payments — it increases total interest paid
Frequently Asked Questions
New car loans for borrowers with good credit average approximately 6.5-7.5% APR in 2026. Used car loans average 9-11% APR. Rates vary based on credit score, loan term, and lender — always compare multiple offers.
A common rule is 20% down for a new car and 10% for a used car. A larger down payment lowers your monthly payment and total interest, and helps avoid being "underwater" (owing more than the car's value) early in the loan term.
In most states, yes — trade-in value is subtracted from the purchase price before sales tax is calculated. A few states (like California in certain cases) tax the full price regardless. Check your state's DMV rules.