How much should I expect to pay each month on a $40,000 car loan?

I want to purchase a car, but I want to know how much I might pay each month. My credit score is over 800, so I should be able to get the lowest interest rate possible. What can I expect to pay?

Eric Schad · Answered on Nov 23, 2021
Reviewed by Shannon Martin, Licensed Insurance Agent.
Since you have a super prime credit score, you should qualify for only the best interest rates for a car loan, provided you have a good debt-to-income ratio and steady income.
Let’s say you get a 2% interest rate for 36 months, 3% for 48 months, 4% for 60 months and 5% for 72 months. Your monthly payments would look like this for a $40,000 loan:
  • 36 months: $1,146
  • 48 months: $885
  • 60 months: $737
  • 72 months: $644
As you can see, your monthly payments go down the longer you extend the loan, but this has a trade-off. You’re also going to pay far more in interest over the life of the loan while also risking going upside down on your car loan. Therefore, you should find a comfortable balance between interest rate and monthly payment to come to the best term for your budget.
Remember that you will also have to factor in other costs of car ownership, including gas, maintenance, and car insurance. When you finance a car, lenders will require you to have full coverage car insurance, so be sure to shop around to get the best rate.
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