Auto Loan Checker

Dealers often mark up the interest rate above what your credit actually qualifies for. The lender gives the dealer a 'buy rate' (say, 6%) and lets them sell you a higher rate (say, 9%). The dealer pockets the difference as extra profit — without disclosing it. On a $25,000 loan, a 3% markup can cost you $2,000–$3,000 in extra interest.

Common fees include: dealer documentation fees ($100–$900), GAP insurance (often overpriced at dealers vs. insurers), extended warranties rolled into financing, paint/fabric protection, nitrogen tires, and VIN etching. Many of these are negotiable or can be purchased cheaper elsewhere. The calculator flags unusually high add-ons.

Always get pre-approved by your bank or credit union BEFORE visiting the dealership. This gives you a baseline rate to compare against dealer financing. Sometimes dealers get you a better rate through manufacturer promotions (0% APR deals) — but compare total cost, not just monthly payment.

Rates vary by credit score and loan term. As of 2025: excellent credit (720+) typically qualifies for 5–7% on new cars; good credit (680–719) around 7–9%; fair credit (620–679) around 11–15%; poor credit (below 620) often 15–20%+. Credit unions frequently offer rates 2–3 percentage points lower than dealers.

Longer terms (72 or 84 months) lower your monthly payment but dramatically increase total interest paid. A 72-month loan at 9% on $25,000 costs about $7,000 in interest — nearly double what a 36-month loan costs. You also risk being 'underwater' (owing more than the car is worth) for longer. Stick to 48 months or less when possible.

GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on your loan and what your car is worth if it's totaled. It's useful if you put less than 20% down or have a long loan term. However, dealers typically overcharge for GAP ($600–$900) — you can buy it from your auto insurer for $20–$40/year added to your policy.