What an exciting purchase! You made a great start to the beginning of car ownership by saving $5,000 for a down payment. Your monthly payment on a $30,000 car loan
will depend on your interest rate and the length of your loan.
The best way to estimate your monthly payments is to seek pre-approval through your preferred lender. You can also estimate monthly payments by using online calculators through reputable websites like:
- Any bank or credit union website
Your actual monthly payments will depend on your credit score and the length of your loan. If you have a higher credit score, you will have a lower interest rate on the car loan, meaning you will likely pay less each month and over the life of the loan.
The length of your loan affects your interest rate and monthly payments. Longer loan terms lower your monthly payments; however, lenders often increase interest rates with longer loan terms. This means that your monthly payment will be lower, but you will pay more in interest. Some of the most popular car loan terms are:
- 24 months
- 36 months
- 48 months
- 60 months
- 72 months
- 84 months
For example, let’s say you have a credit score of 700 and you want a 48-month loan. Using the average interest rate of 3.48%, your monthly payment would equal $670.
If you increase the length of the loan, your monthly payment will drop, but you will pay more money in interest over the life of the loan. If you shorten the length of the loan, your monthly payment will increase, but you will pay less interest over the term.
Budgeting is crucial when you buy a new car, so make sure to account for all of your expenses, including gas, maintenance, and car insurance. When you finance a vehicle, car insurance
will probably be your second highest cost, secondary to only your car note.
Fortunately, you can shop around for insurance to help you save time and money. Leave the hard work of comparing quotes to Jerry
. Jerry compares personalized rates from the top 50 providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free
. The average Jerry driver saves $879 a year on car insurance!