Guide
Calculate car loan payments, total interest, and full amortization schedule. Factor in trade-in value, down payment, and extra payments to find the true cost of financing your vehicle.
New vs Used Financing
New car loans often offer promotional 0–2% rates but depreciate 20–30% in year one. Used car loans carry higher rates but lower total depreciation hit.
The total cost of ownership includes insurance, fuel, maintenance, and depreciation — not just the monthly payment.
Smart Auto Loan Strategies
Put at least 20% down to avoid being underwater (owing more than the car is worth). Keep loan terms at 48 months or less when possible — longer terms mean more interest and extended negative equity risk.
Making one extra payment per year on a 60-month loan can shorten the term by 4–5 months and save hundreds in interest.
Key Takeaways
- Keep loan terms at 48 months or shorter when possible.
- Put 20% down to avoid negative equity.
- Total cost beats monthly payment — compare both.
- Extra payments early in the loan save the most interest.