Car Loan Calculator: Understanding Payments
Understanding car loans helps you make better financing decisions.
Key Parameters
- Car price: Total vehicle cost
- Down payment: 20-50% of price
- Interest rate: 2.5-7% new, 5-12% used
- Loan term: 1-7 years
Example
$30,000 car, 20% down ($6,000), loan $24,000 at 5% for 5yr: $453/mo, total interest $3,180.
Tips
1. Bigger down payment = less interest
2. Shorter term = much less interest
3. Compare 3+ lenders
4. Check for prepayment penalties