WiseIQ Editorial Team
Reviewed by certified financial experts · Updated March 2026
Calculate your monthly car payment, total interest, and true cost of ownership for any auto loan.
Calculate your monthly car payment, total interest, and true cost of ownership for any auto loan.
Compare auto loan rates from top lenders and arrive with financing in hand.
Compare Auto Loan Rates →Based on our analysis of thousands of consumer financial profiles, the most common mistake people make is focusing solely on the interest rate without considering total loan cost, fees, and repayment flexibility. Always compare the APR — not just the rate — and read the fine print on prepayment penalties before signing.
What is a good interest rate for a car loan?
As of 2026, a good auto loan rate is under 6% for new cars and under 8% for used cars. Borrowers with excellent credit (720+) typically qualify for rates under 5%. Rates above 10% indicate subprime credit or a used vehicle with high mileage.
Should I put money down on a car loan?
Yes. A down payment of 10–20% reduces your loan amount, lowers your monthly payment, and prevents being "underwater" on the loan (owing more than the car is worth). Cars depreciate quickly — a 20% down payment helps protect against negative equity.
Is a 72-month or 84-month car loan a bad idea?
Long loan terms (72–84 months) lower your monthly payment but significantly increase total interest paid. They also increase the risk of being underwater on the loan as the car depreciates. If you need a 72+ month term to afford the payment, consider a less expensive vehicle.
Can I refinance my auto loan to get a lower rate?
Yes. If your credit score has improved since you got your original loan, or if rates have dropped, refinancing can save you significant money. AutoPay and Capital One Auto Navigator both offer auto refinancing. Most lenders require the vehicle to be under 10 years old with under 125,000 miles.
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Last reviewed: April 2026 | How we rank products
The classic that changed how millions of people think about money, assets, and building wealth.
View on Amazon →Short, powerful stories about how people think about money — and what that means for your financial decisions.
View on Amazon →As an Amazon Associate, WiseIQ earns from qualifying purchases. This does not affect our editorial recommendations.
| Year | Principal Paid | Interest Paid | Remaining Balance |
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Yearly summary · Assumes fixed rate for full term