Vehicle Financing Calculator
Calculate monthly payments, total interest, and the true cost of your vehicle purchase with different financing options.
Understanding Vehicle Financing
Understanding the true cost of financing a vehicle can help you make informed decisions and potentially save thousands of dollars over the life of your loan.
How to Use This Calculator
- Enter the vehicle's purchase price
- Input your down payment amount
- Select your desired loan term (length)
- Enter the interest rate offered by your lender
- Include your local sales tax rate
- Add any additional fees (registration, documentation, etc.)
- Include any trade-in value if applicable
- Click "Calculate Financing" to see your results
Factors That Affect Your Car Loan
Credit Score Impact
- Excellent (750+): Lowest rates available
- Good (700-749): Competitive rates
- Fair (650-699): Average rates
- Poor (below 650): Higher rates or may require co-signer
Loan Term Considerations
- Shorter term: Higher monthly payments, less total interest
- Longer term: Lower monthly payments, more total interest
- Most common: 60 months (5 years)
- Consider vehicle depreciation with longer terms
Money-Saving Tips
- Shop around for financing before visiting the dealership
- Consider credit unions, which often offer lower rates than banks
- Make a larger down payment to reduce interest costs
- Pay off your loan early if there's no prepayment penalty
- Avoid unnecessary add-ons and extended warranties that increase your loan amount
- Negotiate the vehicle price, not just the monthly payment
Understanding the True Cost of Ownership
Remember that financing is just one part of vehicle ownership costs. Consider these additional expenses when budgeting:
- Insurance: $1,000-$2,000 annually depending on vehicle type and coverage
- Fuel: $1,200-$2,500 annually depending on vehicle efficiency and driving habits
- Maintenance: $500-$1,200 annually increasing as the vehicle ages
- Registration and taxes: Varies by location
- Depreciation: Most vehicles lose 15-25% of their value in the first year