What's a good interest rate for a car loan in 2026?

For new cars with good credit, expect 6-8%. Used cars typically attract 8-12%. Rates above 12% suggest you should shop around or improve your credit.

Should I get a 5 or 7 year car loan?

Shorter is usually better. A 5-year loan costs significantly less in total interest than 7 years. Only extend the term if you genuinely can't afford the higher payments.

Is dealer finance a good option?

Sometimes, especially if they're running promotional rates. Always compare with bank and credit union rates before accepting. Dealers often earn commission on finance.

Car Loan Calculator

Calculator

Calculate your car loan repayments, total interest, and compare loan terms

Free to useNo data storedAI insightsUpdated: February 2026

Planning to buy a car? Use our calculator to work out your repayments based on the vehicle price, deposit, interest rate, and loan term. See how different options affect your budget.

Enter Your Details

Real-World Examples

New SUV Purchase

Sarah is buying a $45,000 SUV with $10,000 deposit at 7.5% over 5 years.

Inputs:

price:45,000deposit:10,000rate:7.5term:5

Loan amount: $35,000. Monthly payment: $701. Total interest: $7,060. Total cost: $42,060.

Budget Used Car

Tom needs a reliable $18,000 used car with $3,000 deposit at 9% over 3 years.

Inputs:

price:18,000deposit:3,000rate:9term:3

Loan amount: $15,000. Monthly payment: $477. Total interest: $2,172. Paid off quickly!

Frequently Asked Questions

Glossary

Balloon Payment

A large final payment due at the end of your loan, reducing regular repayments but requiring a lump sum.

Secured Car Loan

The car is used as security for the loan, typically offering lower interest rates.

Comparison Rate

A rate that includes the interest rate plus most fees, giving a truer cost comparison.

On-Road Costs

Additional costs like registration, stamp duty, dealer delivery, and CTP insurance.

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Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026