How much will my vehicle payments be?

At a Glance: Your monthly car loan payment depends on the loan amount, loan term, and interest rate. The loan amount is the vehicle purchase price minus the down payment, any rebate, and the net trade-in value of your current car. Use the calculator below to estimate your payment before you buy.

What determines your monthly car payment?

Three factors directly determine the size of your monthly car payment:

• Loan amount: The total amount you borrow, which equals the vehicle purchase price minus your down payment, any rebate, and your net trade-in value. Net trade-in value is your car's current value minus the amount you still owe on it.
• Loan term: The length of time over which you repay the loan. A longer term lowers your monthly payment but typically means you pay more interest overall.
• Interest rate: The annual cost of borrowing, expressed as a percentage. Lenders typically base your interest rate on your credit score, so a higher score can help you qualify for a lower rate.

Frequently asked questions (FAQs)

What's the difference between a new car loan and a used car loan?

New car loans often have lower interest rates but require higher down payments or longer loan terms. Used car loans generally have higher interest rates but have lower down payment requirements and shorter loan terms. Also, new cars depreciate faster than used cars, which can impact the vehicle's value over time.

What is the best loan term for an auto loan?

The best term depends on your individual financial situation and budget. Shorter terms result in lower overall interest costs but higher monthly payments. Longer terms may lead to lower monthly payments, but significantly increase the total interest paid over the life of a loan.

What is the minimum credit score needed for an auto loan?

There is no universal minimum credit score requirement. A higher FICO® Score will typically qualify you for better interest rates and loan terms.

How much total interest will I pay on my car loan?

The total interest you pay depends on your loan amount, interest rate, and loan term. Longer terms and higher rates generally mean more interest paid over the life of the loan. A car payment calculator can break down your total interest cost alongside your monthly payment. You can see the estimated total interest paid for your scenario in the calculator above, under "Show details".

How does your loan amount, interest rate, and term affect your car payment?

A higher loan amount or interest rate increases your monthly payment, while a longer loan term lowers it but increases the total interest paid. Adjusting these variables in the calculator can help you find a balance between a manageable monthly payment and a lower overall cost.