Interest Rate Impact Tool Calculator
Estimates only. Results from this calculator are approximate and should not be used as financial advice. Actual figures may vary.See our methodology and data sources.
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.
