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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. What monthly payment can I expect to pay on a $40,000 car loan?

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Melanie Krieps Mergen · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Your monthly car payment on a $40,000 car loan will largely depend on the term length you select and the interest rate you qualify for.
Since you have a super prime credit score, you should qualify for some of the best interest rates for a
car loan
from lenders. But in addition to your credit score, your loan terms will also depend on factors like: 
  • Your debt-to-income ratio
  • The loan-to-value ratio of the vehicle
Just so you’re aware, shorter loan terms usually come with lower interest rates. Depending on the length of your loan, your monthly payments would look like this for a $40,000 loan:
  • 2% interest rate for 36 months: $1,146
  • 3% interest rate for 48 months: $885
  • 4% interest rate for 60 months: $737
  • 5% interest rate for 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.
Pro tip: If you can afford a larger down payment, you can decrease your loan balance, which will lower your monthly payment and help you save on interest over the long run.
Keep in mind: 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.
Enjoy car shopping!
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