Car Loan

A car loan is secured against the vehicle itself, which is why lenders offer meaningfully lower interest rates than unsecured loans — if you default, the bank can repossess the car. This calculator tells you the monthly installment for financing a car purchase, based on the car's price (or the amount you're borrowing), the interest rate, and how many years you'll take to repay it. Most lenders finance the bulk of the on-road price, sometimes requiring a down payment for the rest. All rates here are reducing-balance (diminishing) rates — interest is charged each month only on what you still owe, which is how banks quote home, car and personal loans. If a dealer or lender quotes a "flat rate", it is NOT the same thing and is usually much more expensive than it looks — use the Flat vs Reducing Rate converter to compare.