Monthly Payment · Total Interest · Term Comparison
| Credit Score | New Car | Used Car |
|---|---|---|
| 750+ (Excellent) | 5.0-6.5% | 6.0-8.0% |
| 700-749 (Good) | 6.5-8.0% | 8.0-10.5% |
| 650-699 (Fair) | 8.0-11.0% | 10.5-14.5% |
| 600-649 (Poor) | 11.0-14.0% | 14.5-18.0% |
| <600 (Bad) | 14.0-20.0% | 18.0-25.0% |
| Rule | Meaning |
|---|---|
| 20% down | Put at least 20% down to avoid being underwater |
| 4-year max | Loan term no longer than 48 months |
| 10% of income | Total car costs (payment + insurance) under 10% of gross monthly income |
*Enter your monthly income above to see the 10% ratio. Most financial advisors recommend keeping car payment under 15% of take-home pay.
| Factor | New Car | 3-Year Used |
|---|---|---|
| Price | $35K avg | $25K avg |
| Year 1 Depreciation | 20-30% | 10-15% |
| Insurance | Higher (full coverage req.) | Lower |
| Interest Rate | Lower (0% promos) | 1-3% higher |
| Warranty | Full warranty | May be expired |
| Maintenance | Low (first 3 yrs) | Medium |