Interest Rate Impact Tool Calculator
Frequently Asked Questions
How much does interest rate affect my car loan?
Interest rate has a significant impact on your loan. A 2-3% rate difference on a $25,000 loan can save $1,500-$2,500 in total interest over 5 years and reduce monthly payments by $30-$50. Always shop around and compare rates from multiple lenders to get the best deal.
What interest rate should I expect on an auto loan?
Interest rates vary by credit score, lender, and vehicle. Excellent credit (720+) typically gets 3-5% on new cars. Good credit (680-719) gets 5-8%. Fair credit (620-679) gets 8-12%. Poor credit (<620) may get 12-20%+. Used car rates are typically 1-2% higher.
How can I get a better interest rate?
To get better rates: improve your credit score, shop multiple lenders (banks, credit unions, online lenders), make a larger down payment, choose shorter loan terms, buy new vs used (if rates are better), and negotiate with dealers (they may mark up rates).
Is 0% APR financing really better?
0% APR can save money if you qualify, but often you lose cash rebates or incentives. Calculate the total cost - a $3,000 cash rebate may be better than 0% if you can get a low rate elsewhere. Also, 0% typically requires excellent credit and shorter terms.
