Buying a Car: The 60 vs 72 Month Rule
When negotiating at a dealership, salespeople often focus on the "Monthly Payment" rather than the total price. While stretching a loan from 60 months to 72 or 84 months lowers your monthly bill, it drastically increases the Total Interest Paid.
How Sales Tax & Trade-Ins Work
In many regions, your Trade-In Value reduces the taxable price of the new car.
Example: If you buy a $30,000 car and trade in a $10,000 car, you typically only pay sales tax on the $20,000 difference. This calculator automatically estimates tax based on the (Price - Trade-In) value.
APR and Your Credit Score
Auto loan rates vary significantly based on credit score and whether the car is New or Used. Used cars typically carry higher interest rates. Use the input field above to test how different rates affect your monthly budget.