🚗 Auto Loan Comparison Calculator
Compare up to 3 car loan offers side-by-side to find the best deal
🏦 Loan Option 1
🏦 Loan Option 2
🏦 Loan Option 3
🏆 Comparison Summary
Best Monthly Payment
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Lowest Total Interest
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Total Savings (Best vs Worst)
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Auto Loan Payment Formula
📐 Understanding Auto Loan Calculations
Monthly Payment
Uses standard amortization formula where P = principal, r = monthly rate, n = number of payments.
Total Interest
Total payments minus the original loan amount shows how much you pay in interest over the loan term.
Loan Amount
Your loan amount is vehicle price minus down payment and trade-in value.
📊 Average Auto Loan Rates by Credit Score
| Credit Score | New Car APR | Used Car APR | Approval Odds |
|---|---|---|---|
| Excellent (750+) | 5.0% - 6.5% | 6.5% - 8.5% | Very High |
| Good (700-749) | 6.5% - 8.5% | 8.5% - 11% | High |
| Fair (650-699) | 9% - 13% | 12% - 16% | Moderate |
| Poor (600-649) | 13% - 18% | 16% - 20% | Lower |
| Bad (Below 600) | 18%+ | 20%+ | Difficult |
💡 Loan Term Comparison
| Term | Monthly Payment | Total Interest | Best For |
|---|---|---|---|
| 36 months | Highest | Lowest | Minimizing interest, faster payoff |
| 48 months | High | Low | Balance of payment and interest |
| 60 months | Moderate | Moderate | Most popular, reasonable balance |
| 72 months | Low | High | Lower monthly budget |
| 84 months | Lowest | Highest | Affordability (higher risk) |
❓ Frequently Asked Questions
Q: How do I compare auto loan offers effectively?
Compare the total cost of each loan, not just monthly payments. A lower monthly
payment with a longer term often costs more overall due to interest. Look at APR (not just rate),
total interest paid, fees, and total cost over the loan term.
Q: Is a longer loan term always worse?
Longer terms mean lower monthly payments but more total interest. A 72-month loan
at 6% costs significantly more than a 48-month loan at the same rate. However, if cash flow is
tight, a longer term may be necessary—just understand the tradeoff.
Q: Should I get pre-approved before car shopping?
Yes! Get pre-approved from banks, credit unions, and online lenders before
visiting dealers. This gives you leverage to negotiate and a baseline rate to compare dealer
financing against. Multiple inquiries within 14-45 days count as one for credit scoring.
Q: Are dealer financing rates competitive?
Sometimes. Dealers offer promotional 0% APR for qualified buyers with excellent
credit, which beats any bank rate. However, standard dealer rates are often 1-3% higher than credit
unions. Always compare dealer offers against pre-approved rates.
Q: What fees should I watch out for?
Watch for documentation fees ($100-500), origination fees, prepayment penalties,
and GAP insurance markups. Some fees are negotiable. Credit unions typically have fewer fees than
banks or dealers. Always ask for a complete fee breakdown.