Car loan calculator
An estimate. Dealer fees, registration, extended warranties and gap insurance are not included, and sales tax rules vary by state — some tax the trade-in, some do not.
The amount financed on a car is the price plus sales tax, less the deposit and any trade-in. That figure is then repaid as a fixed-rate instalment loan. On a $32,000 car with $4,000 down and 6% tax at 7.9% over 60 months, the payment is about $600 a month.
How to use this calculator
Dealers negotiate on the monthly payment because a longer term hides a higher price. The same $28,000 financed at 7.9% costs $566 a month over 60 months and $436 over 84 — but $6,940 of interest instead of $5,000, and you spend two extra years owing more than the car is worth. Compare the total paid, never the monthly figure alone.
Questions
It depends on the state. Many give credit for the trade-in and tax only the difference; a few tax the full price. This calculator taxes the full price, which is the conservative assumption.