๐ Know Your Payment Before You Walk In
Car dealers are experts at making numbers fuzzy. Show up pre-armed with this calculator and you'll know exactly what your monthly payment should be โ before any finance manager touches the keyboard.
๐ฐ What Makes Up a Car Payment?
- Vehicle price โ Negotiated, not sticker
- Sales tax โ 0โ10% depending on state
- Title, registration, doc fees โ $200โ$900
- Down payment โ 10โ20% recommended
- Trade-in value โ Acts like a down payment
- Interest rate (APR) โ 5โ20% based on credit
- Loan term โ 36, 48, 60, 72, 84 months
๐ Average US Auto Loan Rates (2026)
| New car, 720+ credit | 5.5% โ 7.5% |
| New car, 660โ719 | 7.5% โ 10% |
| Used car, 720+ | 7% โ 9% |
| Subprime (below 600) | 12% โ 20% |
๐ก Avoid the 84-Month Trap
Longer terms lower monthly payments but cost thousands more in interest โ and leave you "upside-down" (owing more than the car is worth). Stick to 60 months or less when possible.