Car Payment Calculator
Calculate your monthly car payment including down payment and trade-in value.
How much car can I afford?
Financial experts recommend the 20/4/10 rule: 20% down payment, finance for max 4 years, total car expenses (payment + insurance + gas + maintenance) under 10% of gross income. Earning $60k/year? Max $500/month total car costs. This typically means car price under $25k-30k with good down payment and rates. Don't stretch beyond this - car values depreciate rapidly.
Is it better to trade in or sell privately?
Sell privately for $1,000-3,000 more, but requires effort. Trade-in is convenient and may reduce sales tax in some states (you only pay tax on price difference). If you owe money on current car, trade-in is simpler - dealer pays off loan directly. Still underwater? Private sale won't help. Run the numbers - sometimes convenience of trade-in is worth slight loss.
What is a good interest rate for a car loan?
2024 rates: Excellent credit (750+) 5-7%, Good credit (700-749) 7-10%, Fair credit (650-699) 10-15%, Poor credit (under 650) 15%+. Used cars add 1-2%. Credit unions typically beat dealer financing by 1-2%. Get pre-approved before shopping to know your real rate. Dealer may markup rate 2-3% for profit - negotiate or walk away.
Should I lease or buy?
Buy if: Keep cars 6+ years, drive 15k+ miles/year, want to modify/own, prefer no restrictions. Lease if: Want new car every 2-3 years, drive under 12k miles/year, prefer lower payments, always have warranty. Leasing costs more long-term but offers flexibility. Most people financially better off buying used and keeping 10+ years, but lifestyle varies.