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What is the payment on a $40,000 car loan?
I want to buy a 2021 Kia Telluride, but it’s $40,000 with all the options. I don’t have much for a down payment, so I’m going to need a loan for $40,000. With that said, I also need to match my budget. What can I expect the payment to be on a $40,000 car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Pinpointing exactly how much you’ll pay on a
car loan
can be very difficult. If you want to know what the payment is on a $40,000 car loan, you need to factor in your interest rate, credit, term of the loan, and other considerations.The interest rate and term will determine how much you’ll pay each month. However, the lender determines the interest rate based on a variety of aspects. Some determinants of your interest rate include:
- Credit score
- Credit history
- Income
- Debt-to-income ratio
- Loan-to-value ratio
- Total amount borrowed
After assessing these factors, lenders will then give you a rate based on the term you choose. So let’s say that you get the most common loan of
72 months
at the average interest rate (which is based on a credit score of 665) of 4.45%.In this case, your monthly payments on a $40,000 loan would be $634 a month. At 60 months, it would be $745 per month. The longer the loan, the less you pay per month but the more you pay in interest and vice-versa.
Regardless of which loan term you choose, just remember that your lender will require full coverage
car insurance
for the duration of the loan. Be certain that you compare car insurance rates with at least three providers or just use the Jerry
app to make the process even easier.As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a great rate, Jerry can help you buy your new coverage with ease!
View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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