Car Price 

The negotiated price of your new vehicle will determine the length and cost of your monthly car payment. Car prices will differ depending on many factors including the type of vehicle, new or used, current mileage, accident history, and vehicle warranty. To start, you can use the vehicle's sticker price, or the MSRP, to estimate your monthly cost. 


Whether you are interested in a new or used vehicle, it's important to budget for how much you can afford for a monthly car payment before purchasing-and we want to help you learn how. 

Calculating A Car Loan Payment 

With the average cost of a new vehicle at $35,000, there are very few people who can afford to pay cash for a new car. And calculating your monthly car loan payment involves more than just your budget. Your lease term, interest rate, and credit score can all have an effect on your car loan. Understanding these factors will help you choose the best loan for your budget. We can work with you to get pre-approved for an auto loan or lease that will work best for you!


Trade-In and Down Payment 

Trading-in an old vehicle is always a good idea because it will put money toward your new car purchase. When doing so, use a pricing guide to determine how much your trade-in should be worth. The amount of cash you're willing to put down toward a new car can also affect your monthly payment and lower your interest rate. 


Interest Rate and Credit Score for Buying a Car 

Monthly interest rates are added to your auto loan terms and can range anywhere between 0%-21%. That's a big jump-and your credit score has a lot to do with what interest rate you'll receive. The average APR for car loans for borrowers with good credit (scores between 661-780) is around 4.96% for a new vehicle and 6.36% for a used vehicle. Try to boost your score before purchasing a new vehicle (to keep your interest rate around or below 5%) by staying consistent with monthly bills and by reducing your debt-to-income ratio.



It's our job to find you your dream car, and we take that job seriously. Stop into one of our Bob Penkhus showrooms today (virtually or in-person) and a specialist will calculate your monthly car payment and get you on the road in your dream vehicle today!


- Your friends at Bob Penkhus



Number of Months or Loan Term 

Vehicle loans will generally be between two and seven years (if you're not paying cash for your new car). Though your monthly payments may be lower with a longer term, you will end up paying more interest over time. Try to keep your car loan within 60 months (5 years) for a new car and 36 months (3 years) for a used car. 


Sales Tax and Fees 

Don't forget to add in state taxes and fees! You'll have to pay state and local sales taxes, a documentation fee, and registration costs for your new car. That might sound like a lot-but don't worry. Your dealership will be able to help you estimate these costs in the area where you live!