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?
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Answered on May 05, 2021
“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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