Calculate Auto Payments FAQ
Get expert answers about auto financing questions, car loan rates, down payments, and loan terms.
1What's a good interest rate for a car loan in 2025?
Good car loan rates in 2025: New cars 5-7% (excellent credit), Used cars 6-9%. Credit unions often offer 1-2% lower rates than dealers. Rates vary by credit score, loan term, and vehicle age. Check our calculator with your credit tier for accurate estimates.
2How much will I get back in taxes for 2024?
Your refund depends on how much was withheld vs. what you actually owe. Use our tax calculator to estimate. Average refund is ~$3,000, but getting a large refund means you overpaid during the year. Consider adjusting withholdings to keep more money throughout the year.
3What's a good interest rate for a car loan in 2024?
Good car loan rates in 2024: New cars 5-7% (excellent credit), Used cars 6-9%. Credit unions often offer 1-2% lower rates than dealers. Rates vary by credit score, loan term, and vehicle age. Check our calculator with your credit tier for accurate estimates.
4What are the 2024 tax brackets?
2024 tax brackets for single filers: 10% ($0-$11,000), 12% ($11,001-$44,725), 22% ($44,726-$95,375), 24% ($95,376-$182,050), 32% ($182,051-$231,250), 35% ($231,251-$578,125), 37% ($578,126+). Married filing jointly brackets are roughly double.
5How much car can I afford?
Follow the 10/20 rule: spend no more than 10% of gross income or 20% of take-home pay on total transportation costs (payment, insurance, gas, maintenance). Our calculator uses conservative limits: 10-15% of monthly income for the car payment alone, ensuring you can afford insurance and upkeep.
6Should I buy new or used?
Used cars offer better value. New cars lose 20-30% value in the first year. A $30,000 new car becomes worth ~$21,000 after one year. Used cars 2-4 years old have already taken the biggest depreciation hit while still having modern features and reliability.
7What's the ideal loan term length?
Shorter is better for total cost. 3-4 years is ideal, 5 years acceptable, avoid 6+ years. Example: $25,000 at 6% - 3 years: $760/month, $2,347 interest; 6 years: $414/month, $4,824 interest. The longer loan costs $2,477 more and you'll be underwater longer.
8How much should I put down?
Put down at least 10-20% to avoid being underwater immediately. For used cars, 10% minimum; for new cars, 20% minimum. This reduces monthly payments and total interest. On a $25,000 car, $5,000 down saves ~$100/month and $1,500+ in interest over 5 years.
9What other costs should I budget for?
Budget for: Insurance ($100-300/month), gas ($100-200/month), maintenance ($50-150/month), registration/fees ($50-200/year). Total transportation costs often double your car payment. A $400 car payment might cost $800/month total when including all expenses.
10How does my credit score affect my rate?
Credit significantly impacts rates: Excellent (750+): 3-5%, Good (700-749): 5-8%, Fair (650-699): 8-12%, Poor (<650): 12-18%+. On a $25,000 loan, poor credit costs $3,000+ more over 5 years. Check your score and improve it before shopping.
11What is pre-approval for financing?
Pre-approval from banks/credit unions before visiting dealers provides: 1) Better negotiating power, 2) Knowledge of your real rate, 3) Protection from dealer markup. Dealers often mark up rates 1-3% above what you qualify for.
12When might buying a car not be ideal?
Consider waiting if: 1) You have high-interest debt (credit cards), 2) No emergency fund, 3) Job instability, 4) Current car works fine. Cars are depreciating assets - purchasing is typically most beneficial when necessary and focused on reliable, affordable transportation.