How much is the average car loan payment on a $20,000 car?

I'm trying to budget for a new car, so I need to know what a car loan may cost. What's the average car loan payment on a $20,000 vehicle?

Answer
“Car loans vary depending on the length of the loan, your credit score, the current competitive rates on the market, and whether you’re buying a new or used car.
For an example, let’s say you have great credit (780 or above) and you want a 36-month loan. The bank might quote you a rate of four percent. This would equate to a monthly payment of $590 and total interest of $1,257.
Let’s say you have mediocre credit (under 670) and want to take out a 60-month loan, and the bank quotes you a rate of nine percent. This would mean your monthly payment is $415 a month, but you’d pay $4,910 in interest.
Here you can see the vast difference. You’ll have to do your own calculations to find a monthly rate you can afford without paying too much interest.
And while you’re budgeting, don’t forget about car insurance. Since your car is financed, the lender will require full coverage.
Get quotes from Jerry to find the best rate for full-coverage insurance.”
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Eric Schad
Answered on May 05, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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