Auto loans

Auto Loans: Rates, Refinancing & Car Payments

An auto loan is secured by the car, which keeps rates well below unsecured borrowing — but the asset depreciates faster than most loans amortise, which is why so many drivers end up owing more than the vehicle is worth. The term you choose matters at least as much as the rate.

These guides cover current pricing, refinancing an existing loan, borrowing with weak credit, and the arithmetic behind a payment you can actually sustain.

Data snapshot

New car loan, 60-month bank rate

7.47%

As of May 1, 2026 · Federal Reserve Board (G.19), via FRED

Year over year
-0.16 pts
12-month range
7.37%7.63%

Average rate on a 60-month new-car loan at commercial banks, from the Federal Reserve's G.19 release. Captive finance arms and credit unions price around this level, sometimes far below it during manufacturer promotions.

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Car payment calculator

Your monthly car payment

$492

Total$492
Amount financed
$24,000
Total paid over the term
$29,544
Total interest
$5,544
Cost per year of ownership
$6,709

A car loses value while the loan runs. The shorter the term and the larger the deposit, the less of that loss you finance.

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Data sourced from

  • Federal Reserve Economic Data (FRED)

This car payment calculator turns a loan amount, an interest rate and a term into the numbers that actually decide affordability: the monthly payment, the total interest and the date the balance hits zero.

Every figure updates instantly, so you can test a shorter term or a slightly better rate before you ever speak to a lender.

Frequently asked questions

The payment is derived from the amount borrowed, the interest rate and the number of months in the term, using the standard amortisation formula. Each payment covers that month's interest first, and the remainder reduces the balance.

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Frequently asked questions

Sources