Auto Loan Calculator

Trading in your current vehicle can significantly reduce your auto loan in two ways.

First, the value of the trade-in is deducted directly from the purchase price of your new car, lowering the total amount you need to finance. Second, in most states, the trade-in value is deducted before sales tax is calculated, which lowers your total tax bill.

It is almost always best to get pre-approved for an auto loan from a bank or credit union before going to the dealership.

Dealerships often mark up interest rates as a way to make extra profit. Having a pre-approval letter gives you negotiating power; you can ask the dealer to beat your bank's rate. If they can't, you simply use your pre-approved financing.

Our dynamic Health Badge analyzes your inputs in real-time based on industry best practices:

• Loan Term: Terms of 72 months or longer are flagged as High Risk because vehicles depreciate faster than you build equity.
• Interest Rate: Rates above 10% are flagged because they drastically inflate the total cost of ownership.
• Down Payment: We check if you are putting at least 10% down to protect you from being 'upside-down' on your loan.

A 'good' auto loan interest rate depends heavily on your credit score and whether the car is new or used. Typically, new cars qualify for lower interest rates than used cars.

Borrowers with Excellent credit (780+) often see rates between 4% and 6% on new cars. Borrowers with Subprime credit might see rates of 15% or higher. Checking rates with local credit unions is often the best way to find competitive options.